EUR
Comment: Reversing Tuesday’s gains, doing wonders for the overbought situation. Two-way price action should help to push implied volatility higher. Expect consolidation under yesterday’s high at 1.4339 today and maybe Friday too.
Strategy: Attempt small longs at 1.4175; stop well below 1.4000. Short term target 1.4330/1.4360, then a lot more with a first measured target at 1.4545.
EUR/JPY
Comment: Blipping to new a high for this year at 138.02, above April’s at 137.42, and forming a poor version of a ‘bearish engulfing’ candle yesterday. This suggests Yen crosses will hold below yesterday’s highs today and tomorrow, maybe even throughout the month of June. In other words, still very difficult trying to establish where the daily ranges will be.
Strategy: Attempt shorts at 136.40, adding to 137.00; stop above 138.15 Short term target 134.00.
GBP
Comment: Stopping exactly at the bottom edge of the weekly Ichimoku ‘cloud’ and should hold below here today and tomorrow, maybe next week too. However, the 9-day moving average at 1.6221 might limit the downside this morning.
Strategy: Attempt small longs at 1.6275; stop below 1.6000. First target 1.6500.
JPY
Comment: Obviously prices cannot hold inside the current range for ever, and we continue to feel that the Ichimoku ‘cloud’ should eventually force it lower. Expect even more of the same today as the Yen looks for direction.
Strategy: Attempt small shorts at 96.10/96.35; stop above 97.35. First target 95.00, adding to shorts below 94.40 for 94.00 and then 93.65.
