EUR
Comment: Regaining its composure and trying to base against the top of a massive Ichimoku ‘cloud’. A sustained break above the 9-day moving average at 1.3840 will probably trigger some short-covering allowing the Euro to sneak back up to 1.4100.
Strategy: Buy at 1.3650, adding to 1.3560; stop below 1.3400. Add to longs above 1.3670 and again above 1.3850 for 1.4000.
EUR/JPY
Comment: This is just so not where the action is, so don’t hold your breath. This Yen cross is crawling sideways in the middle of a very large Ichimoku ‘cloud’ and below first retracement resistance. This may cap again today suggesting a drift down to the 26-day average at 123.45.
Strategy: Attempt shorts at 125.50; stop well above 128.75. First target 125.25, then 123.45.
GBP
Comment: Redrawing the downward-sloping ‘wedge’ formation, in line with the massive Ichimoku ‘cloud’, and things don’t look quite so impressive. Nevertheless Cable looks set to attempt an important break higher despite a series of formidable resistance levels.
Strategy: Buy at 1.5060, adding to 1.4900; stop below 1.4800. Add to longs on a sustained break above 1.5150 for 1.5500 and then December’s high at 1.5725.
JPY
Comment: Retreating from a recent high at 94.65, ahead of the Ichimoku ‘cloud’, after a modified version of an A, B, C-type corrective bounce. Prices will now hopefully hold below 50% Fibonacci resistance at 93.80, so that momentum should slowly turn bearish. Note that the USD is almost overbought and open interest is one third of last year’s peak.
Strategy: Sell at 92.10, adding to 93.00; stop well above 93.85. First target 91.75, then 90.00.
