Mizuho Corporate Bank

EUR
Comment: Downside probing, to the bottom of the Ichimoku ‘cloud’ should dominate this morning. We feel the latest decline should try and base between 1.5400 and 1.5300, ahead of May’s low at 1.5285. Be very careful as there is a strong chance that we might be wrong and that there is another leg down to 1.5100 before an interim base forms. Remember, we feel we are in for a lengthy period of correction and consolidation.
Strategy: Possibly attempt tiny longs at 1.5415; stop below 1.5350. Short term target 1.5485, then 1.5550.

EUR/JPY
Comment: Bouncing from the top of a large Ichimoku ‘cloud’ and likely to hold above here again today. Later this month we favour a cautious drop to the lower edge of this very fat ‘cloud’ at 158.35. Below here would complete a large ‘double top’.
Strategy: Sell at 162.80; stop above 163.50. Short term target 161.65, then 159.00.

GBP
Comment: Oh dear! Dropping all the way back down to some of the lowest levels of the last eighteen months. Consensus opinion is for Cable to drop to 1.8750 in 12 months’ time (and EUR/GBP to drop to 0.7750). No doubt we will all be proved wrong. Wait and watch for signs of a ‘spike low’.
Strategy: Possibly attempt tiny longs at 1.9500; stop well below 1.9450. Short term target 1.9700/1.9800.

JPY
Comment: We are rapidly losing the will to live as Yen holds within the same range of the last six weeks. There is no reason to hope anything is likely to change today. Expect more of the same with an upside probe this morning and a slow drift lower very late in the day.
Strategy: Possibly attempt small shorts at 105.50; stop above 106.00. Short term target 104.00.