EUR
Comment: Little to add as we continue to consolidate at the upper edge of the range that has held since late May. The Euro is no longer overbought and momentum is bullish, and with a little luck the step up in the top of the Ichimoku ‘cloud’ might lead to a test and break higher.
Strategy: Attempt small longs at 1.4325; stop below 1.4170. Short term target 1.4350, then 1.4445.
EUR/JPY
Comment: Bouncing up to a thin Ichimoku ‘cloud’, postponing the break lower we had targeted. With a little luck the upper edge of the ‘cloud’ will limit the latest small rally setting off a re-test of the 131.00 area.
Strategy: Attempt shorts at 133.45; stop above 134.15. Short term target 131.50, then 131.00.
GBP
Comment: Maybe too much to hope for but the lower edge of a thin Ichimoku ‘cloud’ has managed to nudge Cable higher.
Strategy: Attempt small longs at 1.6380; stop below 1.6175. First target 1.6414/1.6445, then 1.6600.
JPY
Comment: Bouncing slowly from a low at 91.92 last wee, ahead of July’s increasingly important low at 91.73. Expect more nervous consolidation above here today and maybe all week. An eventual break below 91.50 should see implied at-the-money volatility increase significantly and increasing bearish momentum.
Strategy: Sell at 93.15; stop above 93.55. Short term target 92.50, then 91.95.
