Mizuho Corporate Bank

EUR
Comment: Retreating from a high at 1.5909, as expected and testing the top of the Ichimoku ‘cloud’ at 1.5650. Expect nervous consolidation between 1.5600 and 1.5700 today.
Strategy: Attempt shorts on a squeeze to 1.5655/1.5700; stop above 1.5850. Short term target 1.5600.

EUR/JPY
Comment: A ‘doji’ following the ‘shooting star’ on the weekly chart suggests instability at these levels. Expect more hovering today, noting that the pair is very overbought and that bullish momentum has eased considerably.
Strategy: Attempt small shorts at 167.75; stop above 168.65. Short term target 167.25, then 166.25.

GBP
Comment: Disappointing as we drop back into the Ichimoku ‘cloud’. Expect messy consolidation between 1.9700 and 1.9850 today.
Strategy: For those who have to: attempt tiny longs at 1.9750, adding to 1.9700; stop below 1.9650. Short term target 1.9850.

JPY
Comment: Keeping within the corrective ‘channel’ as we consolidate four weeks in a row around 106.50. Allow for even more of the same this week, starting with an upside probe. No wonder at-the-money implied volatility is dropping.
Strategy: Possibly attempt shorts at 107.30/107.65; stop above 108.65. Short term target 106.65, then 105.55.