• EUR/JPY 141.65 Short Triggered - Half Profits Booked At 141.10 - 140.65 2nd Target
• '05, '06 USD Uptrend Recovery In Jeopardy At Current Levels
• EUR/USD Must Have Level Of 1.2225

We are right back in the saddle after our Kiwi battle last week with the EUR/JPY short triggered last night at 141.65. Current price is last night's Asian lows of 141.10 . We booked half profits on the position here and will look to close the rest at .618 Fib Ret of 139.50 low to 142.50 highs at 140.65. Keep an eye on USD/JPY that is flirting with the lower end of the 2-month range of 115.50 119.50. Should 115.50 give way, expect EURJPY to be at our 2nd target in no time at all.

Speaking of USD/JPY breaking down, the Weekly USD Index chart happens to be at the 2nd crucial test of uptrend support at current levels of 89.09. Should the Index implode to re-test late 2005 lows of 87.93 technicians would classify this Dollar uptrend recovery as over.

Along with the lower Dollar outlook is a technically significant level just above of us at 1.2225 in EUR/USD. We suspect there will be significant selling interest at this level which adds further fuel to a lower EUR/JPY as USD/JPY breaks through 115.50.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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