EUR
Comment: Catching up with what has been happening in some smaller currencies for the last three weeks. FX and some other markets are basically breaking out of large bands that have held since roughly October. Investors should sit up and take note because complacency will be very costly. A weekly close above 1.3700 would add to current strong bullish momentum. Note that above here there are no really strong resistance levels until the 1.4200 area.
Strategy: Buy at 1.3915 but only if prepared to add to 1.3750; stop well below 1.3700. Short term target 1.3950, then a lot more with a first measured target at 1.4200 then 1.4550.
EUR/JPY
Comment: Slightly worrying as despite holding below the top of a very large Ichimoku ‘cloud’ bearish pressure has not increased and prices of Yen crosses are not slipping as expected.
Strategy: Sell at 131.25; stop above 132.00. Add to shorts on a sustained break below 129.50 for 128.00 short term and then 126.00.
