EUR
Comment: Should continue in consolidation mode this week where picking intermediate tops and bottoms will be very difficult. For this morning expect prices to hold between 1.2650 and 1.3000, with another squeeze above here late today or later in the week.
Strategy: Attempt small longs at 1.2885, adding to 1.2750; stop below 1.2600. First target 1.3000, then 1.3300.
EUR/JPY
Comment: Yen crosses, and the ‘carry trade’ generally, should continue in corrective mode this week. This Yen cross should hold above 122.00 today and squeeze back up to 130.00 and probably through here to 133.00 later this week.
Strategy: Attempt tiny longs at 128.00, adding to 125.00; stop below 122.00. First target 130.00, then 131.00 and probably 133.00.
GBP
Comment: Should continue in consolidation mode this week holding between 1.6000 and 1.6600 today. Then probably 1.6800 and maybe 1.7400.
Strategy: Attempt small longs at 1.6345; stop well below 1.6000. First target 1.6600, then 1.6800 and maybe 1.7150.
JPY
Comment: Bouncing strongly from Friday’s low at 96.35 suggests another upside probe this week; expect a squeeze to 102.00 and probably no higher than 103.00. This might also see implied volatility edge back up towards October’s record high.
Strategy: Possibly attempt small shorts at 99.50; stop/reverse above 99.85 for 101.60/102.00. First target 98.35, then 97.00.
