Sitting here watching price action in front of the screens today gave me the feeling that traders around the world were elsewhere.  UK traders might have been watching England trounce Trinidad and Tobago, and Colin Montgomery and David Howell lead the US Open. US traders must have been watching Tiger fall 10 shots from the lead, because they sure weren't pushing this market around.

I digress. We have been trying to get short USD/JPY for a few sessions now on only solid setups, but the market has just not moved into our zone. So the only thing to do is remain patient and wait for the setup. Our level to get short uptown at 115.50-60 remains well intact, as well as channel support just below us at 114.70.

If the market heads higher tonight, watch the price action struggle at June highs before tossing them out there to get short. If we do get a look at USD/JPY above 115.50, try to keep your stops above 116.00 to avoid any stop run attempts at the figure level.

If the market just heads straight down, channel support comes in at around 114.70. Wait for that level to break first on a move down to 114.40, followed by a retracement back to the former channel support level of 114.60-70 to get short. Stops should be above 115.00 and hang on to as much of the position for as long as you can because this is potentially a dollar trend-changer.

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.