Mizuho Corporate Bank

EUR
Comment: Looking for direction as we squeeze higher yesterday only to dip below the bottom of the Ichimoku ‘cloud’ today. Expect more nervous intra-day moves roughly between 1.5525 and 1.5625 this morning and probably a short squeeze late today.
Strategy: Buy at 1.5565; stop below 1.5500. Add to longs on a sustained break above 1.5650 for 1.5700 short term and then 1.5750.

EUR/JPY
Comment: Dipping below the 26-day moving average inside a potential ‘broadening top’, both on the daily and on the weekly charts. Expect a test of the top of the Ichimoku ‘cloud’ at 166.75/166.50 today/Monday.
Strategy: Sell at 167.45, adding to 168.35; stop above 169.25. Short term target 166.75, then 166.00.

GBP
Comment: Sharp intra-day moves as Cable looks for direction while working within a potential ‘flag’ formation. Expect another test of the 1.9900 area late tonight or Monday.
Strategy: Buy at 1.9825; stop below 1.9740. Short term target 1.9900, then 2.1000.

JPY
Comment: Surely things cannot be this boring for much longer. We expect all markets to start moving today, the 1st August, and continue with big sharp moves for another four weeks at least. For this morning expect a cautious probe of the 107.30/107.00 area followed by a sudden slide to 106.60/106.00 late today.
Strategy: Sell at 107.50, adding to 108.00; stop above 108.65. Short term target 107.30, then 106.60.