The sloppy price action continues in the dollar pairs after a generally as expected payrolls number initially sent the dollar moderately higher before giving back all the gains and then some. We were stopped in EUR/JPY last night on a stop run move below 150.00, which should never have happened in the first place. I got too anxious with the .618 projection of A-B down from C to D at 150.05. The real level was the full 1.0 projection at 149.64 which corresponded perfectly with .618 retracement of B-C. I even had a reader email me to say â�,��"what about that 149.64 level?â�,� Taking a mistake like that home over the weekend is really annoying. Well, at least readers are learning to see the levels for themselves, which tells me I'm doing a good job.

So EUR/JPY only traded about 3 points below the 149.64 Fib support zone before climbing almost 100 points in three hours. This is a wonderful chart to keep for further reference about markets respecting solid technical levels in volatile, news-driven markets. The stock market is quickly re-approaching May highs as the bond market continues its amazing run, both bullish scenarios for the EUR/USD going into next week.

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

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