Mizuho Corporate Bank

EUR
Comment: Rallying to 1.5550, as expected, and more difficult as we trade close to the middle of the broad band that has held since March. Because the Ichimoku ‘cloud’ is thin we feel there is a good chance of a break higher, if not today then later this week, for a re-test of the 1.5800 resistance area.
Strategy: Attempt small longs at 1.5535, adding to 1.5475; stop below 1.5440. Add to longs on a sustained break above 1.5600 for 1.5700, maybe 1.5800.

EUR/JPY
Comment: Inching to its highest price this year at 167.84, ahead of the all-time high of 169.05 set in July last year. The Euro is extremely overbought and bullish momentum is really not nearly as strong as one might think. We continue to watch and wait for signs of topping.
Strategy: Possibly attempt tiny shorts at 167.50; stop above 168.00. Short term target 167.00, then 165.65.

GBP
Comment: Nothing new with Cable as we bounce for the umpteenth time from support between 1.9400 and 1.9200. We have stalled against the lower edge of the Ichimoku ‘cloud’, ahead of potential trendline resistance at 1.9755 today. Above here there are potentially lots of buy-stops.
Strategy: Attempt small longs at 1.9675 but only if prepared to add to 1.9550; stop below 1.9400. Add to longs on a sustained break above 1.9700. Target 1.9800/1.9850.

JPY
Comment: Very difficult as we hover in small ranges in a sort of no-man’s land where chart levels are poor. Bullish momentum has eased, the US dollar is not overbought, and futures positions are being swiftly rebuilt. We continue to feel the corrective bounce is mature in terms of time and therefore continue to watch for signs of topping (as we have been doing unsuccessfully for weeks).
Strategy: Attempt small shorts at 107.80/108.10 ; stop above 108.70. Short term target 107.00, then 106.50.