EUR/JPY: Possibly attempt tiny shorts at 134.15; stop above 135.75

Nicole Elliott from Mizuho Corporate Bank at 11/16/09

Comment: All elements on this chart suggest a long medium term position. Obviously in order to break to new highs strong daily and weekly closes are needed, here and in a series of other currencies.

Strategy: Attempt small longs at 1.4975, adding to 1.4900; stop below 1.4800. Short term target 1.5000/1.5055, eventually more.

Comment: Yen crosses continue to disappoint as they trade within this year’s ranges for months on end. This one, in the middle of the broad band, gives no clue as to what it might to next. Avoid.

Strategy: Possibly attempt tiny shorts at 134.15; stop above 135.75. Short term target 133.00, then 132.00.

Comment: Just managing the strongest weekly close this year. However, Cable is not out of the woods yet as it hovers at the upper edge of a massive Ichimoku ‘cloud’, the Lagging Span hits the ‘cloud’, and moving averages do not confirm. Hopefully with a little help from other currencies it will manage to break above here this week.

Strategy: Buy at 1.6725, adding to 1.6625; stop below 1.6500. First target 1.6750/1.6800, eventually more.

Comment: All elements on this chart point to a bearish position. Surely it cannot hold in this ‘triangle’ for too much longer. We favour a sharp drop and a serious downside test of key support at 87.00 (and then 85.00) this week and through to December. Remember, thin markets will exacerbate moves.

Strategy: Sell at 89.55 but only if prepared to add to 90.00; stop above 90.75. Short term target 89.29/89.18, then 88.25/88.00.