EUR
Comment: Dropping from the top of a very large Ichimoku ‘cloud’ and moving towards the 26-day moving average. Weaker than we had allowed for but still clearly in corrective mode. We shall watch for signs of basing again against the 1.3100 area.
Strategy: Attempt longs at 1.3180; stop well below 1.3100. Add to longs on a sustained break above 1.3400 for 1.3600 and then more.
EUR/JPY
Comment: Dropping just below the 9-day moving average as we retrace and correct below Monday’s ‘spike high’. We expect this retreat to start to try and base between 132.00 and 130.00.
Strategy: Attempt small longs at 131.50; stop below 130.00. Add to longs on a sustained break above 134.00 for 138.65 and then more later this month.
GBP
Comment: Holding up a little better than some other currencies, above immediate retracement support and the Ichimoku ‘cloud’ though below yesterday’s high at 1.4960. Expect more uninspiring consolidation today prior to a move higher very late this week.
Strategy: Strategy remains unchanged: buy at 1.4675; stop below 1.4400. Short term target 1.4960, then 1.5375.
JPY
Comment: Little to add as we consolidate neatly under Monday’s high at 101.45. We continue to favour another brief squeeze higher still, to 102.00 and possibly even as high as 106.50 some time later this month.
Strategy: Attempt small longs at 100.00, adding to 99.50; stop well below 99.00. Cover ahead of 102.20.
