EUR
Comment: The retreat from March’s high can be seen as an A, B, C-type correction where C is 0.6% of A. Yesterday’s ‘hammer’ candle against retracement support around 1.3100 suggests an interim low is in place. Expect a squeeze up to the top of the Ichimoku ‘cloud’ today.
Strategy: Buy at 1.3265; stop below 1.3100. Add to longs on a sustained break above 1.3400 for 1.3600 and then more.
EUR/JPY
Comment: Possibly basing between the 9-day and 26-day moving averages ahead of Fibonacci support. The higher above this week’s low at 130.95 that prices close today, the less the weekly candle will look like a ‘spike high’.
Strategy: Buy at 132.75; stop below 130.50. Add to longs on a sustained break above 133.25 and again above 134.00 for 137.00 and then more later this month.
GBP
Comment: Hovering under the psychological level at 1.5000 and only above here will things take off (we hope). A weekly close above 1.4850 should add to current bullish momentum.
Strategy: Buy at 1.4725; stop below 1.4500. Short term target 1.4775, then 1.4960/1.5000.
JPY
Comment: Still consolidating 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: Buy at 100.00, adding to 99.50; stop below 98.70. Cover ahead of 102.20.
