Mizuho Corporate Bank

EUR
Comment: Dropping to a new recent low at 1.5285 as many become very confident with the idea that the US dollar's woes are now over. We currently do not agree with this idea and feel that we are moving into an extended period of complex correction and consolidation where we will now start trying to establish trading bands. For this morning prices should try and hold above 1.5280 and possibly rallying to 1.5400. Then expect another downside probe towards 1.5230, 50% Fibonacci retracement.
Strategy: Possibly attempt tiny longs at 1.5300; stop below 1.5260. Short term target 1.5400/1.5440.
Direction of Trade: →

GBP
Comment: The break below 1.9600 is seen as a 'clear out' which has taken Cable to the bottom of the downward-sloping 'wedge' formation. Now watch for a reversal pattern to form on the weekly chart, if not this week then next one.
Strategy: Possibly attempt tiny longs at 1.9535; stop well below 1.9500. Short term target 1.9600 then 1.9700.
Direction of Trade: →

JPY
Comment: Again you might need a magnifying glass to see it but yesterday we formed a very small 'spike high'. This might just allow for a sustained break below the nine-day moving average at 104.45. This should then trigger a drop to the 26-day average at 102.87. Downside pressure increases if we hold below 105.00 this morning.
Strategy: Sell at 104.35, adding to 105.00; stop above 105.75. Short term target 103.50, eventually 101.50.
Direction of Trade: →↘

EUR/JPY
Comment: Small signs of topping here and in many other Yen crosses. Watch for weekly 'spike high' type candles late on Friday. Downside pressure increases if we hold below 161.60 today and tomorrow.
Strategy: Sell at 160.00/160.60; stop above 162.00. Short term target 159.00 then 158.00.
Direction of Trade: →↘