The dollar gapped about 60 points lower (EUR/USD higher, USD/JPY lower) from Friday's close at the 5:00 p.m. ET open. Our focus levels will continue to be 1.3225 in EUR/USD and 115.25 in USD/JPY. A test of 115.25 will setup a bullish Gartley buy pattern in USD/JPY.

The hourly shows a nice 5-wave move down projected to end at the 2.618 multiple of wave 1 at 115.10. I am currently bidding in thirds to work into a long position at 115.32, 22, and 12 with stops around 114.95. Keep in mind there was a sizable 35-point gap that traders will likely want to close as they work out of last week's positions. USD/JPY went out at 115.85 on Friday, which will serve as our initial take profit and stop move level.

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.