EUR
Comment: Endlessly dreary as we consolidate randomly in a relatively narrow range below the increasingly important 1.4200 level. Until we get a weekly close above here we shall have to allow for yet more random consolidation within the recent range.
Strategy: Attempt longs at 1.3975; stop below 1.3900. Short term target 1.4100, then 1.4200.
EUR/JPY
Comment: Testing trendline support above a thin Ichimoku ‘cloud’ but below moving averages. We expect an imminent drop where a weekly close below 132.00 would add considerably to downside pressure, potentially setting off a very sharp move lower over the next two weeks.
Strategy: Sell at 133.35, adding to 134.00; stop above 135.55. Short term target 132.00/131.80, then 130.00.
GBP
Comment: Looking for direction while trading above an increasingly large, upward-sloping Ichimoku ‘cloud’. A weekly close clearly above 1.6500 should add to current strong bullish momentum, hopefully with a whole host of currencies pulling in the same direction.
Strategy: Attempt small longs at 1.6285; stop below 1.6175. First target 1.6550/1.6600.
JPY
Comment: Consolidating neatly below the lower edge of the Ichimoku ‘cloud’ and the moving averages, above trendline support. Hopefully some time this week we will see a re-test of recent lows at 95.00 and then the increasingly important 94.00 area.
Strategy: Attempt shorts at 95.50, adding to 96.00; stop well above 96.25. First target 95.00/94.88, then 94.00.
