EUR
Comment: Consolidating above retracement support, between the 9-day and 26-day moving averages. A daily close clearly above 1.4100 should increase bullish momentum, avoiding another cautious downside probe.
Strategy: Buy at 1.4035; stop well below 1.3900. Short term target 1.4100, then 1.4250 and this mont’s high at 1.4339.
EUR/JPY
Comment: Holding surprisingly neatly above the 9-day moving average at 136.58 again today, hovering either side of April’s high at 137.42. We shall continue to allow for more work either side of this area all week.
Strategy: Possibly attempt small shorts at 137.45; stop above 138.50 Short term target 136.50, maybe 135.00.
GBP
Comment: The pound is the best performing currency this week, despite the government and a tube strike in London, taking GBP/JPY to its highest level since early November. Cable is now consolidating above the 9-day moving average, it is not overbought, and bullish momentum is stronger than it has been since at least 1993.
Strategy: Attempt longs at 1.6400, adding to 1.6230; stop well below 1.6000. First target 1.6475, then 1.6650.
JPY
Comment: Trading either side of a thin Ichimoku ‘cloud’, above moving averages, having traded in a broad band roughly between 94.00 and 100.00 since March. Expect more cautious random small swings today and tomorrow.
Strategy: Possibly attempt small shorts at 98.00, adding to 98.45; stop above 99.25. First target 97.50 then 97.00.
