EUR
Comment: Same old, same old as the Euro goes nowhere. However, the 9-day moving average has levelled off while the 26-day one dropped suddenly towards it. Having already spent three weeks at current levels we really could do with a strong weekly close this Friday.
Strategy: Attempt small longs at 1.3635; stop below 1.3500. Add to longs on a sustained break above 1.3750 for 1.3800/1.3840.
EUR/JPY
Comment: Slightly unsteadily but this cross is edging up towards 125.00 as expected. Yesterday’s close above the 26-day moving average, but momentum has yet to turn bullish. Note the Lagging Span hits a big dark candle today. Candles in Feb 8 to Feb 22 have higher highs which might help to see it inch higher over the next two weeks.
Strategy: Attempt small longs at 123.35; stop below 121.00. Add to longs on a sustained break above 124.00 for 125.00.
JPY
Comment: Stuck inside the Ichimoku ‘cloud’ but unlikely to hold quite so neatly over the next two weeks as it narrows and Spans cross. Momentum is zero, the US dollar is not overbought, so allow for a series of random moves roughly between 91.00 and 88.00 for a while longer.
Strategy: Trade the range between 91.00 and 89.00.
