EUR
Comment: Small signs of life as the Euro edges up a fraction. Hopefully this morning’s break above 1.2850 will be sustained and later today should set off a squeeze to increasingly important resistance at 1.2900.
Strategy: Buy at 1.2850; stop below 1.2790. Short term target 1.2880/1.2900, eventually 1.3000.
EUR/JPY
Comment: Tiny signs of instability as we consolidate below the record high at 151.68. If we can hold above the 9-day moving average at 151.11 this morning expect a re-test of this level later today. However, if we do not manage a higher weekly close this Friday there is a chance of a shake-out.
Strategy: Attempt tiny longs at 151.20; either use a tight stop below 150.80 or be prepared to add to 150.50 and a stop well below 150.00. Short term target 151.65 and 155.00 medium term.
GBP
Comment: Slow work but managing to break above 1.9000. Note that Cable is not overbought and that momentum is just bullish. Next stop 1.9100 and then increasingly important resistance at 1.9145/1.9180.
Strategy: Buy on a dip to 1.9000; stop below 1.8900. Short term target 1.9050 then 1.9150.
JPY
Comment: Still stuck in a very narrow range inside a fat Ichimoku ‘cloud’, but note that this narrows significantly by the end of this month. Momentum is neutral and so is the RSI. For today expect more of the same, roughly between 117.50 and 118.20, with the chance of a downside probe to more important support at 117.00.
Strategy: Sell on a bounce to 118.00/118.20; stop above 118.60. Short term target 117.25 then 117.00.
