EUR
Comment: Trying, not very well, to base around the 1.3200 area and a very thin Ichimoku ‘cloud’. A break above the 9-day average at 1.3412 may trigger some short-covering.
Strategy: Buy at 1.3245/1.3200; stop below 1.3000. Add to longs above 1.3375 for 1.3475 then 1.3600.
EUR/JPY
Comment: Bouncing cautiously from trendline support, here and in a number of other Yen crosses, adding a little hope that we will not break to new recent lows this month and maybe longer. Over this quarter we currently favour a lot of sideways work in all Yen crosses and therefore trading strategies should adapt considerably.
Strategy: Attempt tiny longs at 119.35; stop below 115.80. Target 120.75, maybe 123.40.
GBP
Comment: Same old story as we remain stuck in the middle the ‘wedge’ formation that has dominated since October. Hopefully if other currencies gain a little ground against the US dollar they will help Cable to move higher.
Strategy: Buy at 1.4800; stop below 1.4460. First target 1.4925, then 1.5250.
JPY
Comment: Rallying slowly from a recent low at 88.48 and likely to hold above here today and early next week. We favour another squeeze later today towards the moving averages and probably a test of the lower edge of the ‘cloud’ next week.
Strategy: Trade the range between 89.00 and 91.50 keeping an open mind.
