EUR
Comment: Trying to base against the 26-day moving average and retracement support. Yesterday’s bounce was decent but not conclusive so allow for more of the same today.
Strategy: Attempt longs at 1.3890; stop below 1.3800. Short term target 1.4020, then 1.4245.
EUR/JPY
Comment: Consolidating between 138.00 and the 9-day moving average at 135.50, and we favour more of the same today with a downside test likely late in the afternoon.
Strategy: Attempt small shorts at 136.55, adding to 137.50; stop above 138.20 Short term target 135.50, maybe 134.00.
GBP
Comment: Bouncing smartly from retracement and trendline support, and the 26-day moving average which all cluster around 1.5800, despite an appalling political situation. Two-way price action should keep the bid tone to implied volatility.
Strategy: Attempt small longs at 1.6035, adding to 1.5855; stop below 1.5800. First target 1.6100, then 1.6200.
JPY
Comment: Hovering above the top of the Ichimoku ‘cloud’, which gets very thin at the end of next week, the summer solstice. Expect more cautious random small swings today and probably all week.
Strategy: Possibly attempt small shorts at 98.10, adding to 98.55; stop above 99.25. First target 97.65 then 96.00.
