We were triggered short USD/JPY at 116.55 as the New York market finished up at new monthly highs. The pair of Fib resistance levels at 116.65 and 72 should contain price in what could be a quiet market ahead of tomorrow's slightly less important PPI number. CPI is the big one thatââ,¬â"¢s scheduled for Wednesday at 8:30 a.m. ET.
We're looking to take a bit of a swipe at this market with initial take profit level a big figure lower at 38.2% retracement at 115.66. Be cognizant of the round numbers, however, such as figure, half, and quarter levels in the yen products. What I mean by that is if you see the market hesitate at 115.75, there could be a large option structured there and you might seriously consider covering your short ahead of our target.
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.
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