Mizuho Corporate Bank

EUR
Comment: Inching below the thin Ichimoku ‘cloud’ by moving sideways across the page and too many appear confident that first support at the 1.5400 area will hold. We feel this is likely to break and our downside target will probably be 1.5100, but a cautious approach is warranted.
Strategy: Attempt tiny shorts at 1.5490 but be prepared to add to 1.5600; stop above 1.5700. Short term target 1.5400/1.5360.

EUR/JPY
Comment: Trading at some of the highest ever levels and no signs of topping yet. If anything price action over the last five days is a small ‘pennant’ hinting at another serious upside test. We are very unsure as to our current outlook and therefore suggest one does as little as possible again today and we continue to watch for topping activity.
Strategy: Possibly attempt tiny shorts at 166.00; stop above 167.25. Short term target 165.50, then 165.00.

GBP
Comment: Too exhausting for many as we continue to thrash around the lower levels of the last three months. Expect more of the same today including a ‘spike’ below 1.9400 some time(s) this month.
Strategy: Possibly attempt tiny longs at 1.9560; stop well below 1.9500. Short term target 1.9725.

JPY
Comment: Expect more messy sideways work today, roughly between 106.50 and 107.50. Chart patterns are totally inconclusive and chart levels poor. Note that futures positions, approaching delivery, are close to their lowest in three years.
Strategy: Do as little as possible. For those who have to: possibly attempt tiny shorts at 107.25, adding to 107.50; stop above 107.90. Short term target 106.50, then 106.00.