Mizuho Corporate Bank

EUR
Comment: Rallying faster than we had hoped, breaking above the top of the Ichimoku ‘cloud’, and re-testing May’s high at 1.5818. Expect hesitation here this morning followed by a cautious small squeeze higher. A sustained break above 1.5900 while unlikely today, will probably lead to an awful lot of re-thinking on the US dollar.
Strategy: Possibly attempt tiny shorts at 1.5775; stop/reverse above 1.5840 for 1.5900. Short term target 1.5700, possibly 1.5600.

EUR/JPY
Comment: The highest weekly close this year and certainly not going according to plan. Perhaps it is caused by US banks creating dollar deposits through Yen swaps. For today do as little as possible because the Euro is overbought and we are close to the highest prices ever. We continue to watch for topping activity.
Strategy: Possibly attempt tiny shorts at 166.00; stop above 166.75. Short term target 165.00, then 163.50.

GBP
Comment: Squeezing higher an facing a lot of obstacles on the way up. Buy stops might lie above 1.9800.
Strategy: Buy at 1.9700, adding to 1.9655; stop below 1.9500. Short term target 1.9800/1.9850.

JPY
Comment: A small ‘spike high’ at 106.44 on Thursday above weekly trendline resistance. While below 106.00 we shall continue to favour a drop back down to interim support around 103.00 and more further out.
Strategy: Sell at 105.10, adding to 105.80; stop above 106.50. Short term target 104.50, then 103.00.