Mizuho Corporate Bank

EUR
Comment: Taking its time but our view remains unchanged: 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 – hopefully today.
Strategy: Buy at 1.5575, adding to 1.5500; stop below 1.5390. Short term target 1.5600, then 1.5650/1.5700.

EUR/JPY
Comment: Very dull as we move randomly across the page. We still feel prices should top and then drift back down to 159.00 this week.
Strategy: Sell at 162.10/162.35; stop above 163.00. Short term target 161.60 then 159.00 medium term.

GBP
Comment: Trying to bounce from the bottom of a downward-sloping ‘wedge’ formation. We shall continue to watch for a reversal formation on the daily weekly charts, possibly the two in conjunction with each other.
Strategy: Buy at 1.9555; stop below 1.9400. Short term target 1.9600/1.9635, eventually 1.9800.

JPY
Comment: A potential ‘double top’ at 50% retracement resistance just above 105.00. For today expect consolidation between 103.50 and 104.75 this morning with a drop to 103.00 possible very late in the day.
Strategy: Sell at 104.00 but be prepared to add to 104.75; stop above 105.75. Add to shorts below 103.55 for a short term target at 103.00, eventually 102.50.