Mizuho Corporate Bank

EUR
Comment: Retreating from the new all-time high at 1.6040 and Tuesday’s ‘shooting star’. We should consolidate below here again today with an initial attempt at basing between 1.5800 and 1.5750.
Strategy: Attempt small longs at 1.5850, adding to 1.5800; 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 to the bottom of the potential ‘broadening top’ formation, culminating in a small ‘spike low’. This suggests we shall consolidate within the formation foe another couple of days at least. Rallies towards the middle of the formation, and the moving averages, are seen as selling opportunities for another far more serious decline later this month.
Strategy: Sell at 166.50, adding to 167.00; stop above 167.75. Short term target 165.50, then 164.00.

GBP
Comment: Consolidating neatly below 2.0100 and look for signs of basing between 1.9960 and 1.9900 today and tomorrow. A weekly close above 2.0000, which might be possible this week and hopefully by the end of the month, should propel Cable a lot higher spurred by short-covering because the pound is so completely out of favour this year.
Strategy: Attempt longs at 2.0000, adding to 1.9900; stop well below 1.9800. Short term target 2.0150, then 2.0400 and long term much more.

JPY
Comment: Bouncing from the bottom of the Ichimoku ‘cloud’ and likely to hold above 103.77 until next week. For this morning, and maybe all day, expect neat consolidation between 104.50 and 105.50. Then a short squeeze towards 106.20 where we expect the move to top and reverse.
Strategy: Attempt shorts at 105.00, adding to 105.50; stop above 106.25. Short term target 103.80, then 103.00, eventually