Mizuho Corporate Bank

EUR
Comment: Stuck under a thin Ichimoku ‘cloud’ and while we may stay here today there is still a small chance of an upside squeeze. Surprisingly open interest is soaring. Further out we favour a re-test of 1.5300.
Strategy: Attempt small longs at 1.5500; stop below 1.5440. Short term target 1.5540, maybe 1.5600.

EUR/JPY
Comment: Tiny ranges at this year’s highest price do not inspire confidence. 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: Attempt small shorts at 167.40; stop above 168.00. Short term target 167.10, then 165.65.

GBP
Comment: Same old story: we have retreated from the lower edge of the Ichimoku ‘cloud’. Expect more work at current levels today.
Strategy: Possibly attempt small longs at 1.9515; stop below 1.9400. Add to longs on a sustained break above 1.9700. Target 1.9800/1.9850.

JPY
Comment: Same as yesterday: 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 really overbought, and futures positions are being furiously 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 shorts at 108.05 ; stop above 108.70. Short term target 107.00, then 106.50.