The yen products are in play again this morning as EUR/JPY and USD/JPY are struggling to recoup some of the losses spurred by Asian and European selling. EUR/JPY is making a feeble attempt to hold daily uptrend channel support at the 148.50 region.

A closer look at the 240-minute chart shows symmetry that matches up with the 50% retracement shown in orange. Both of these Fib support levels are lining up with that daily trend channel support shown above. Though our ultimate feeling is that will fail ahead of the .618 retracement at 149.75, there are opportunities for long scalp trades in the short term.

I am long a small position at 148.49 and am bidding for more at 148.55 with stop for both at 148.38. The .500 and .618 retracement in the 149.50-149.75 will serve as the ultimate targets.

USD/JPY is showing a very similar 4-hour chart with symmetrical and retracement support matching up with trendline support at the 115.75 zone. A .618 retracement to 116.75 will likely cap the doomed bounce from channel support. Look to start lightly selling USD/JPY should we get a look above 116.50 today, as well as EUR/JPY above 149.50.

I will be speaking in Las Vegas at the Forex Expo this weekend. The concepts and techniques used to produce my column will be heavily covered. Feel free to stop by and say hello.

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.