Mizuho Corporate Bank

EUR
Comment: So dull as we remain trapped in a tiny range for five consecutive days. One could say the chart pattern of the last three weeks looks like a ‘wine glass’ and therefore the next move should be a small short squeeze. Again assuming we hold above 1.5350 we should easily get up to 1.5700, shaking the complacent.
Strategy: Buy at 1.5490, adding to 1.5450; stop below 1.5350. Short term target 1.5550, then 1.5650/1.5700.

EUR/JPY
Comment: Very slow work but yesterday’s small ‘bearish engulfing’ candle hints that we may have stalled against the 163.00 level. If not today then next week we feel prices should top and then drift back down to 159.00.
Strategy: Sell at 162.00/162.35; stop above 163.00. Short term target 161.60 then 159.00 medium term.

GBP
Comment: This currency pair appears to have come to a complete halt. We can only assume that when Cable traders wake up they will be forced to buy the pound, something they will no doubt have difficulty getting their heads around. Yesterday’s price action while dreary, has formed another small ‘spike low’. We shall continue to watch 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: Tiny signs of stalling around 105.50 in what should be part of a larger interim topping formation. A sustained break below 104.50 later today should set off the next slow move down to 103.00, maybe 102.50.
Strategy: Sell on a bounce to 104.85/105.00; stop above 105.75. Add to shorts below 104.40 for a short term target at 104.00, eventually 102.50.