You should be out of your EUR/JPY long trade from yesterday with anywhere from 45-70 points in your account. And you're going to need that extra cushion because we're going to put it to work today in USD/JPY.

The broken trendline support re-test that we have been watching for three days now is finally upon us. USD/JPY is bumping into .618 retracement at 116.75 and is looking to clear a few more buy stops off the book with an approach of 117.00.

Down to the 90-minute chart we can key in on our entry and stop levels. My orders are to sell 1 at the .618 retracement at 116.75, sell 1 at the 1.618 Fib projection at 116.85, sell another 1 at 116.95 for good measure, with stops for the entire position at 117.15. The initial target on this one is way down town just above the 116 figure, which figures out to the .618 retracement of 115.56 low to the projected 116.88 high.

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.