-- myself included. Technically speaking, this dollar breakdown could have some more legs to it. USD/JPY for example, is showing a pair of beautiful symmetrical legs pointing to 117.81 and 117.66, which coincides with trendline support about 55 points lower than the spot rate.

EUR/USD is facing similar resistance from an AB=CD move from origination from the same days as the USD/JPY chart above. But the noticeable difference is that the dollar is already at its support point against euro, where as the dollar has a ways to trade lower until it reaches support against the Yen. Put another way, the euro is stronger against the dollar than yen is against the dollar. Yet another way to say it is EUR/JPY is an uptrend.

I am very anxious to have a shot at getting long USD/JPY into that 117.50 test, and EUR/USD is also buyable above 1.2700 while EUR/JPY is above 150.00. There is no specific trade recommendation tonight, because frankly, I'm exhausted and would like to see how things develop further before getting involved again.

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.