Mizuho Corporate Bank

EUR
Comment: Much scurrying as the Euro retreats from the record high at 1.6020. The steady sell-off of the last two days suggests the US dollar is moving into a consolidation phase for the next few weeks. For this morning expect prices to hover either side of 1.5680. Rallies are likely to be capped around 1.5800, the downside at 1.5600 today and part of next week.
Strategy: Possibly attempt tiny longs at 1.5680; stop below 1.5600. Short term target 1.5800.

EUR/JPY
Comment: Small signs of turning down and at-the-money implied volatility is doing the same. A weekly close below 161.50, which might be very difficult today, should turn momentum bearish.
Strategy: Attempt small shorts at 163.55, adding to 164.00; stop above 165.00. Short term target 163.00, then 161.50.

GBP
Comment: Very messy as we thrash around below the psychological 2.0000 level for a third consecutive week. Expect more of the same today.
Strategy: Attempt tiny longs at 1.9735; stop below 1.9650. Short term target 1.9970/2.0000.

JPY
Comment: Re-testing last week’s high at 104.66 and still there are no signs of topping. While we had thought the process might be slow we did not think it would be this slow. This also hints at more slow moves for much of next month.
Strategy: Attempt small shorts at 104.25; stop above 104.75. Short term target 103.00.