Mizuho Corporate Bank

EUR
Comment: Dropping through a fat Ichimoku ‘cloud’ and on its way to our next target at 1.5400. Prices should try and hold above 61% retracement support at 1.5485 this morning but note that momentum is about to turn bearish so if not today then early next week expect a break below here.
Strategy: Sell at 1.5500, adding to 1.5550; stop above 1.5655. Short term target 1.5400, maybe 1.5350.

EUR/JPY
Comment: Retreating form the recent high at 164.48 but nothing terribly convincing as yet. While below April’s high at 164.98 we shall continue to hope for topping activity. A sustained break below 162.90 lessens the chance of another upside test.
Strategy: Attempt small shorts at 163.30, adding to 164.00; stop above 165.00. Short term target 163.00, eventually 161.50.

GBP
Comment: Many gaping in disbelief as Cable manages to hold inside a tiny little range as the Euro gets hit hard. Yesterday’s ‘spike low’ hints that it will manage to hold above 1.9700 again today. Price action this week is seen as a currency setting up for a big move higher this summer.
Strategy: Attempt small longs at 1.9765; stop below 1.9670. Short term target 1.9850/1.9880, eventually 2.0000.

JPY
Comment: Yesterday’s third upside test saw prices inch to a new recent high at 105.88. We shall be looking for signs of topping this morning and then a very slow drift back down to 104.50 if not late today then early next week.
Strategy: Attempt shorts at 105.30/105.50; stop above 105.95. Short term target 104.50, then 103.50.