• London Open Reverses Dollar Direction - Advanced Fib Pattern Completion
• EUR/USD Well Bid Into 1.2050, USD/JPY Daily Resistance Break
• Market Looking For 145.00 EUR/JPY Stops

EUR/USD saw extremely heavy two way action as price flopped back and forth between 1.2080 and 1.2120 throughout yesterday's New York and Asian session. Buyers pushed the price to a 1.1240 high per-London open, but as the UK volume entered the market, EUR/USD had already seen the highs of the week. We were long from around 1.2100 and the push to 1.2140 hopefully gave you an opportunity to scale out partials, or at least move the stop to breakeven. The push to 1.2140 completed a bearish Butterfly formation and those of you who have been following the advanced pattern series might have recognized it. Along with EUR/USD putting in a bearish Fib pattern, USD/CHF was dancing to a similar tune with a bullish Gartley of its own pre-London. Regrettably, I was riding with too tight of a stop and was knocked out of EUR/USD into the New York close. Hopefully you didn't make the same mistake.

But if you did grab the move higher, I would bet it felt like you just gave birth, so it's probably wise to steer clear for now. We hear of heavy buying interest below 1.2050, so the move lower should be quite arduous. USD/JPY has broken clear from the daily downtrend resistance at 118.50 and EUR/JPY has a juicy 145.00 target uptown. With a generally supported EUR/USD and USD/JPY on the breakout, EUR/JPY should be a nice play higher.

EUR/JPY recently held uptrend channel support at 143.00 and is making a push higher towards 144.00. 145.00-15 finds key daily Fibonacci targets that never traded, so the stops above 145.00 are still intact. I have a feeling the market wants those stops.

While 143.50 holds, look to establish longs with stops around 143.15. The point size of this stop loss as compared to your entry will likely be greater than 40 points, so position size smaller to account for the greater risk. Look to book a partial profit if price probes above 144.10 and trail the stop behind you on the way to the 145.00 stop run.

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

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.