Mizuho Corporate Bank

EUR
Comment: Basing against the top of the Ichimoku ‘cloud’ after an A, B, C-type pullback where C is a little bigger than A. Expect a sharp rally back up to 1.5800. A weekly close above here might turn momentum bullish.
Strategy: Buy at 1.5715; stop below 1.5625. Add to longs on a sustained break above 1.5800 to cover longs between 1.5950 and 1.6020.

EUR/JPY
Comment: Mercifully pulling back from the top of a potential ‘broadening top’ but bearish momentum is unlikely to kick in strongly until we break below the Ichimoku ‘cloud’. Watch for a potential ‘spike high’ or ‘bearish engulfing’ candle on both on the daily and the weekly charts.
Strategy: Sell at 167.75, adding to 168.50; stop above 170.00. Short term target 167.20 then 166.20.

GBP
Comment: Still trying to base against 1.9800. With a little help from other currencies it should start rallying back up to 2.0000. We remind that only when Cable starts holding comfortably above 2.0100 will the risk of further downside tests ease. A weekly close above 2.0000 might help increase bullish momentum.
Strategy: Attempt small longs at 1.9855; stop below 1.9800. Short term target 2.0000, then 2.1000.

JPY
Comment: Retreating from trendline resistance and now below the 200-day moving average. We continue to watch for signs of stalling with a weekly close below 106.00 probably turning momentum bearish. For today expect nervous work between 106.00 and 107.00.
Strategy: Sell at 106.70/107.00; stop above 107.55. Short term target 106.00, then 105.25.