Mizuho Corporate Bank

EUR
Comment: Great excitement in some camps as the Euro gives back almost 50% of the gains since February. Yesterday’s ‘doji’ candle suggests we have found an interim low and will consolidate above here for several days. For this morning prices should hold above 1.5350 with a sustained break above 1.5450 setting off a short squeeze to 1.5550, maybe 1.5600.
Strategy: Attempt longs at 1.5435, adding to 1.5360; stop below 1.5270. Short term target 1.5555/1.5600.

EUR/JPY
Comment: More signs of topping as 9-day and 26-day averages turn bearish. Watch for weekly ‘spike high’/’bearish engulfing’-type candles late today. Downside pressure increases if we hold below 160.50 this morning.
Strategy: Sell at 159.65, adding to 160.40; stop above 161.15. Short term target 159.00 then 158.25.

GBP
Comment: Probing the bottom of the downward-sloping ‘wedge’ formation and then stopped dead in its tracks. Now watch for a reversal pattern to form on the daily and weekly chart, if not this week then next one. Note that open interest in the futures market has recovered quickly over the last month.
Strategy: Attempt longs at 1.9555; stop well below 1.9500. Short term target 1.9600 then 1.9700.

JPY
Comment: Looking slightly more top-heavy as we break trendline support and below the nine-day moving average. Over the course of today we favour a slow drop towards the 26-day moving average at 102.87. Downside pressure increases if we hold below 104.50 this morning.
Strategy: Sell at 103.50 but only if prepared to add to 104.50; stop above 105.00. Short term target 103.00, eventually 101.50.