EUR
Comment: Still in consolidation mode and the corrective move should continue for another week at the very least. For this morning expect a re-test of 1.3000 with a sustained break above here setting off a short-squeeze back up to 1.3300.
Strategy: Attempt longs at 1.2900, adding to 1.2800; stop below 1.2495. First target 1.3000, then 1.3300.
EUR/JPY
Comment: Retracing 61% of the final leg lower and at the higher end of the recent consolidation range. If not today then later this month we shall allow for another upside push to 133.00 and probably 135.00. Then watch for signs of topping between here and the 140.00 area.
Strategy: Attempt longs at 128.50; stop/reverse below 122.00 for 114.00. First target 131.00, then 133.00.
GBP
Comment: Still rather precarious as we try to base, or at least take a breather. Expect a lot more correction and consolidation this month.
Strategy: Attempt longs at 1.5880, adding to 1.5600; stop below 1.5400. First target 1.6000 then 1.6400 and probably 1.7000 later this month.
JPY
Comment: Correcting half of the summer’s decline in what we see as a bounce followed by consolidation that should take up much of November. We continue to favour another upside probe this week, to 102.00 and probably no higher than 103.00. This might also see implied volatility edge back up though not as high as October’s record high of 43.50%.
Strategy: Possibly attempt small shorts at 99.65; stop above 100.65. First target 98.35, then 97.00.
