Mizuho Corporate Bank

EUR
Comment: Yesterday’s push to a new all-time high at 1.6040 ended with a ‘shooting star’ candle suggesting we will consolidate below here for another few days. Dips are seen as buying opportunities for generalised US dollar weakness later this summer.
Strategy: Attempt small longs at 1.5900, adding at 1.5850; stop well below 1.5750. Cover longs between 1.5950 and 1.6020, re-buying on a sustained break above 1.6050 for 1.6250.

EUR/JPY
Comment: Dropping below what we now see as a ‘broadening top’ pattern. From very overbought the Euro is now almost oversold and momentum is bearish. This should increase if we hold below 167.50 this morning. We remind that as is so often the case when Yen crosses unravel they do so amazingly quickly.
Strategy: Sell at 166.00, adding to 167.00; stop above 167.75. Short term target 165.50, then 164.00.

GBP
Comment: Breaking above the psychological 2.0000 level but a pity it did not manage to close above 2.0100 which would have added considerable bullish momentum. Therefore expect consolidation below yesterday’s ‘spike high’ at 2.0162 for another day or two. A weekly close above 2.0000, which is possible this week and hopefully by the end of the month, would add yet more bullish momentum as it would if Cable were to hold above 1.9900 this morning.
Strategy: Attempt longs at 2.0035, adding to 1.9900; stop well below 1.9800. Short term target 2.0150, then 2.0400 and long term much more.

JPY
Comment: Dropping below the small ‘triangle’ and hovering in a relatively small Ichimoku ‘cloud’. Bearish momentum should increase if we hold below 105.00 this morning. Our next downside target is the 103.00 area.
Strategy: Attempt shorts at 104.50, adding to 105.50; stop above 106.00. Short term target 104.00, then 103.00, eventually 100.00.