Mizuho Corporate Bank

EUR
Comment: More signs that we are forming an interim low with a small ‘spike low’ yesterday. Again assuming we hold above 1.5350 for the rest of this week short-covering could easily take us up to 1.5700, shaking the complacent.
Strategy: Buy at 1.5485/1.5450; stop below 1.5350. Short term target 1.5550, then 1.5650/1.5700.

EUR/JPY
Comment: Squeezing higher by more than we had expected. If not today then next week we feel prices should top and then drift back down to 159.00.
Strategy: Attempt shorts at 162.60; stop above 163.25. Short term target 161.00 then 159.00 medium term.

GBP
Comment: We are aware that our readers must see us as the boy who cried ‘wolf’, but yesterday’s ‘hammer’ candle on Cable is the sort of sign we have been looking for. The pound is oversold, futures positions are ballooning, and consensus opinion is decidedly anti-UK. We shall now be watching for a reversal formation on the weekly chart either this week or next, possibly the two in conjunction with each other.
Strategy: Buy at 1.9470/1.9450; stop below 1.9350. Short term target 1.9600, eventually 1.9800.

JPY
Comment: Rather dull as it toys with the fairly pivotal long term chart level around 105.50 in what should be part of a larger interim topping formation. The move should fizzle out very late this morning and then we should drift slowly lower.
Strategy: Sell at 104.85, adding to 105.30; stop above 105.75. Short term target 104.00, eventually 102.50.