EUR
Comment: Interminable drift as it remains stuck below the top of the Ichimoku ‘cloud’ (which gets very thin next week). Possibly the lagging Chikou Span will get support from Fibonacci retracement and the candles of 26 days ago. A sustained break above 1.3400 might turn momentum bullish.
Strategy: Attempt small longs at 1.3100; stop below 1.3000. Add to longs on a sustained break above 1.3350 and again above 1.3400 for 1.3600 and then more.
EUR/JPY
Comment: The Technical picture is deteriorating, getting messier and less reliable, as we creep sideways for a third consecutive day. For the moment we favour basing activity against the 26-day moving average and another probe higher, but this is subject to change at short notice.
Strategy: Attempt small longs at 130.35; stop below 129.00. Short term target 132.00 then 133.50/134.00.
GBP
Comment: Too dreary for words. With a little luck a weekly close above 1.5000 will send many off to re-think UK plc, making for more interesting markets over the next month.
Strategy: Attempt longs at 1.4860; stop below 1.4550. Short term target 1.5050, then a lot more.
JPY
Comment: Another small ‘hammer’ yesterday against first retracement support yet the market has not really seen an increase in bullish momentum. Note also that the lagging Chikou Span currently has support from the candles between 99.00 and 98.00.
Strategy: Attempt longs at 99.40, adding to 98.55; stop below 97.50. First target 99.60, then 100.70.
