Traders, I'm going to come right out and say it. That's how you pick the top of a market. We dialed in our entry using the precision of Elliott Wave and Fibonacci analysis, and then waited patiently for our limits to be filled at our exact levels. We were filled short at 114.55 this morning, the market went only 10 points against us to a 114.65 high, and then we watched the market implode almost 100 points lower into channel support. I am out of the trade for a 90 point profit waiting to see how USD/JPY reacts to this channel support.



We are also working a EUR/CHF short position from 1.6675 as we trade about 20 points lower at 1.6655. I have pulled stops down to 1.6685 and am going to let this one work for a while. The dollar is getting hammered this morning, most notably against Euro and Swiss, which makes the EuroSwiss x-rate an interesting one to watch.

There is channel support at 1.6635, and if broken, I will look to add to the short position and trail stop lower.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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