Mizuho Corporate Bank

EUR
Comment: A decent-sized ‘spike high’ at a new record 1.5495 yesterday suggests prices will hold under here for at least a day or two, maybe a week or two. Expect far more of a two-way market. Medium term dips to 1.5000/1.4900 are seen as buying opportunities for persistent US dollar weakness this year.
Strategy: Attempt very small longs at 1.5350, adding to 1.5300; stop below 1.5140. Short term target 1.5450/1.5500.

EUR/JPY
Comment: A bit messy but holding below the top of the Ichimoku ‘cloud’. Note that the cross is not oversold and that implied volatility should remain high. Watch other Yen crosses for signs of topping.
Strategy: Attempt shorts at 158.15; stop above 159.50. Short term target 156.00/155.50, then an awful lot lower.

GBP
Comment: Consolidating far more neatly than we had hoped, above 2.0000 and below 2.0225, and may well do so again today. A sustained break above 2.0225 later this week or next week should trigger another short squeeze to 2.0500/2.0600. Cable might just lead the way.
Strategy: Buy at 2.0125, adding to 2.0050; stop below 1.9900. Add to longs on a sustained break above 2.0225 for 2.0500/2.0600.

JPY
Comment: Consolidating neatly above Friday’s low at 101.40 and no longer oversold. For today expect more of the same. Below 101.40 should trigger a drop to 101.25 (1999 low) then a rather scary move to 100.00.
Strategy: Sell at 103.00, adding to 103.50; stop above 103.75. Add to shorts on a sustained break below 12.50 for 101.50/101.25 taking profits and standing aside if possible.