We scooped up some USD/JPY against the 118-30-40 technical support zone, which was just about the low following the BOJ news. Price traded up to the Asian session opening highs of 118.80, before exploding higher to a 119.16 high in New York following strong CPI data.

If you are still long USD/JPY, tighten up your stops to just below the 119.00 level. The leg up that we just traded has progressed 85 points, which means we are facing symmetrical resistance from the previous 2 legs, totaling 87 and 80 points. In the last week of trading, USD/JPY has been able to manage an 84 point average advance in the last 3 attempts. Plus, .618 retracement is hanging out at 119.27 to make a trade through 119.30 that much more difficult.

The dollar still feels bid this morning, but with the resistance USD/JPY is facing uptown, and the swarm of bids EUR/USD is likely to find below 1.2500, USD/CHF looks to be the play. Look to get long between 1.2700-15, with stops below the .618 retracement of today's 1.2661-1.2739 New York move following CPI.

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.