EUR
Comment: Battered about with nasty intra-day moves as the Euro thrashes around trying to break out of the downward-sloping ‘wedge’ formation. A daily close above the 26-day moving average at 1.2920 might turn momentum decidedly bullish.
Strategy: Attempt small longs at 1.2700; stop well below 1.2600. First target 1.2850 then 1.3000.
EUR/JPY
Comment: Consolidating at these higher levels above the Ichimoku ‘cloud’. If we can hold above 122.20, roughly the mid-point of the band that has held since October, the next obvious move is for a squeeze up to trendline resistance at 128.50 and probably December’s high at 131.02.
Strategy: Attempt longs at 124.50 but only if prepared to add to 122.25; stop well below 121.50. First target 125.00, then 127.75/128.50.
GBP
Comment: Slapped down from trendline resistance and a very thin Ichimoku ‘cloud’. Dreary as now we have to go back to seeing whether retracement support holds.
Strategy: Possibly attempt tiny longs at 1.4230; stop below 1.4050. Short term target 1.4400 then 1.4600.
JPY
Comment: Yen and yen crosses rallying, despite weak stock markets, much to the surprise of many. The US dollar is very overbought but bullish momentum is stronger than it has been since 2001. Having got to our target at 98.00 (near enough) further gains are possible but are likely to be increasingly difficult and hard-won.
Strategy: Possibly attempt tiny longs on a dip to 97.50/97.00; stop below 96.00. First target 97.98, maybe 98.50.
