We were filled on two-thirds of our USD/JPY short for an average price of 116.80, as the market consolidates around 116.60. That second order to sell USD/JPY at 118.85 was only 2 points from the high trade of the day.  We are now facing minor uptrend support that could offer existing shorts the chance to build into a full short position, because we missed the our last one-third to go at 116.95, and those who missed our first series of entries a chance to open new short positions.

Down to the 30-minute chart, wait for the shown uptrend support to break, 116.45 to trade, and then offer out 116.55-60 to get short with stops above the New York highs at 116.87, say 116.94 stops. The 116.94 stops apply to both new shorts and old shorts. Old shorts, treat that 116.94 stop to buy 1 as a separate order from your 117.12 stop to buy 2.

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

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