Mizuho Corporate Bank

EUR
Comment: Looking slightly unsteady as we hover under a new record high (1.5985). The Euro is not overbought and futures positions are well below last year’s record. For today expect small random moves roughly between 1.5750 and 1.5900.
Strategy: Possibly attempt tiny longs at 1.5800; stop below 1.5700. Short term target 1.5900/1.5950.

EUR/JPY
Comment: Last week’s squeeze higher has surprised us with its strength and it almost feels as though some are thinking the ‘carry trade’ is back in action. Our long term view remains intact although we have been rattled. For today we shall be watching for sings of forming an interim top.
Strategy: Possibly attempt small shorts at 164.35; stop above 164.75. Short term target 163.00, then 161.50.

GBP
Comment: Last week’s squeeze higher has surprised us with its strength and it almost feels as though some are thinking the ‘carry trade’ is back in action. Our long term view remains intact although we have been rattled. For today we shall be watching for sings of forming an interim top.
Strategy: Possibly attempt small shorts at 164.35; stop above 164.75. Short term target 163.00, then 161.50.

JPY
Comment: Squeezing higher on Friday through a very thin Ichimoku ‘cloud’, to a high at 104.66 and just beyond what we had imagined. Today we shall watch for signs of topping, possibly a slow move which may take several days. Trade carefully.
Strategy: Attempt shorts at 103.80; stop above 104.75. Short term target 103.00, then 101.00.