The yen products have gapped down deep into longer-term support levels after this weekend's G7 meeting where the CNY revaluation and the global effect of higher oil prices were the hot topics. USD/JPY gapped down to 115.50, which was solid support in both February and March, then saw a light bounce in Asian sessions before Eurozone and UK sellers pushed the dollar through 115.50 to a 114.80 low. We have tested and successfully held the 114.80 low twice and are going for the third round. If in the event, 114.80 does not hold, a very solid Daily Fib zone lies just below at 114.60 area.

We will be looking to bid for USD/JPY at 114.72 and 114.55 with a stop below 114.35, looking for a retest of the February and March level of 115.50. If we catch a flier, and USD/JPY breaks through the 116.00 level, the gap fill could be in play.

EUR/JPY is still working off the excesses of a nasty EURJPY butterfly that set that stage for a 145 failure. Like USD/JPY, EUR/JPY has solid Fib support just underneath us at 141.85 area.

Longs could be established in a similar fashion to the USD/JPY trade idea above at the lower end of the 13-minute trend channel in the 141.85 zone. Stops should be under 141.60, and the initial target will be the upper end of the trend channel at the 142.30 region.

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

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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.