Dollar's were put on a deep discount sale ahead of Black Friday in US, and the race is on to cut prices even more into year's end. My October call that EUR/USD would breakout in November has been fulfilled preventing 2006 from being the tightest range in 26 years.

Wednesday night's USD/JPY 115.25 still remains in play. I will actually look to do a bit of bottom picking here with stops below 115.00. EUR/USD on the other hand, should not be top-picked as EUR/JPY broke to new highs. .786 retracement of the 5-wave decline from 1.3660 to 1.1640 comes out to be 1.3224, and the 1.618 extension of corrective wave b points to a wave c end at 1.3233. So we have a 1.3225 area target for the remainder of 2006.

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

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