Tomorrow is the first Friday of the new month so we all know what means, Non-Farm Payroll time.  Expect volume to be light tonight, but with the recent volatility there might be a trade setup or two worth taking. USD/JPY failed at the technically significant 113.40 level and looks to follow through to the downside.
 
The 4-hour uptrend line that is shown in the smaller, inset chart will serve as the target just below 112.00 level. Use a trendline break of the larger, 30-minute chart as your trigger. Your trigger is first a confirmed break of the minor uptrend line originating Wednesday, followed by a retest of the trendline break zone of 112.55-112.75. Stops should be above 112.90.

Again, trading would be whippy tonight ahead of tomorrow morning's major economic release.

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

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