EUR
Comment: Consolidating in a tiny ‘triangle’ just above the top of the daily Ichimoku ‘cloud’ and above the 9-day moving average. Momentum is just bullish and we are trading at the 20 and 50-day moving averages. Let’s see if the Euro can capitalise on these small bullish Technical points.
Strategy: Attempt small longs at 1.2825/1.2800; stop below 1.2580. First target 1.2855, then 1.2925.
EUR/JPY
Comment: Trading in the middle of a large ‘triangle’, looking for direction. Expect more of the same this morning as many yen crosses prepare for what we think should be another downside test.
Strategy: Sell at 108.05; stop above 109.65. First target 106.60, then 105.50.
GBP
Comment: Lets see if Cable can form an interim base against the 38% Fibonacci retracement with help from the large daily Ichimoku ‘cloud’. A daily close above the 9-day average at 1.5463 might help push bullish momentum higher.
Strategy: Attempt longs at 1.5415; stop below 1.5300. First target 1.5500, then 1.5700.
JPY
Comment: Trading in a tight range around 84.50, waiting for this afternoon’s figures and with very sharp swings at the long end of JGB yields. All aspects of this chart point to a short position and we continue to prepare for a series of cautious downside probes.
Strategy: Attempt shorts at 84.25, adding to 84.55; stop well above 85.00. First target 84.00, then 83.50.
