Mizuho Corporate Bank

EUR
Comment: Re-testing Monday’s low at 1.4645 and the Euro is still terribly oversold. Expect a very messy and unstable attempt at basing this week.
Strategy: Attempt small longs at 1.4660; stop below 1.4600. Short term target 1.4800 and then 1.5000.

EUR/JPY
Comment: Retracing half of the previous rally, holding clearly under the ‘broadening top’. We now expect a drop to 158.00 within the fortnight and further out a slide to 152.00. Below here and the long term picture gets seriously interesting.
Strategy: Sell at 161.55, adding to 162.50; stop above 164.00. Short term target 161.00/160.60, then 158.00.

GBP
Comment: A pathetic attempt at basing and few signs of basing despite being well overdue after four consecutive weekly declines and about thirteen daily ones. Over the next week or two we expect a very messy attempt at basing followed by a bounce to 1.9000.
Strategy: Attempt longs at 1.8545; stop below 1.8500. Short term target 1.8700, then 1.8800.

JPY
Comment: The US dollar is slightly less overbought as futures positions are being re-built. We are still looking for signs of topping at the 110.00/110.50 pivotal chart area.
Strategy: Possibly attempt small shorts at 110.15/110.40; stop above 110.75. Short term target 109.35 then 108.55.