Mizuho Corporate Bank

EUR
Comment: Hanging in mid-air just above the recent low at 1.4046. The Euro is still terribly oversold and stock markets still look very shaky. Knee-jerk reactions and frantic scurrying for cover will probably be the order of the day.
Strategy: Possibly attempt tiny longs at 1.4150; stop below 1.4000. Short term target 1.4200/1.4225, then 1.4425.

EUR/JPY
Comment: Thrashing around above pivotal support at 150.60 Friday and Monday, but well within minimum retracement levels. It now appears to be settling down and getting used to current levels, bringing forward the possibility of a massive move lower. If this were the case one-month at-the-money implied volatility could soar from the current 16.30% to 19.00%.
Strategy: Sell at 151.55, adding to 152.50; stop well above 153.75. Short term target 150.60, then 150.00, then 149.25 and then we really get going.

GBP
Comment: A highly unusual chart pattern above the recent low at 1.7471: a possible ‘spinning top’. Once again expect it to try and base today. Be very careful.
Strategy: Attempt small longs at 1.7620; stop below 1.7400. Short term target 1.8000, then 1.8300.

JPY
Comment: Re-testing the Ichimoku ‘cloud’ which while thin at the moment, broadens significantly by mid-month. Price moves are fairly contained at the moment but were we to break lower allow for a sudden slide to the 104.00 area.
Strategy: Sell at 107.35, adding to 108.00; stop well above 108.25. Short term target 106.75, then 105.75/105.50.