Tomorrow is the FOMC announcement, so there could be some last minute readjustment of positions, but on the whole we expect the markets to mostly be quiet. However, I would like to continue playing EUR/JPY lower as the daily chart formation is indicating difficulties above 159.00.

The uptrend channel that began on January 25 has been broken, and should now be considered resistance on a retest from below. The .618 retracement comes in around 157.85.

Moving down to the 5-min chart, there are pair of projected symmetrical legs also pointing to 157.85 area resistance. I am offering into this level with stops above the figure, in case the market wants a full retest of the former channel support. The market is very close to our entry level, so I'll cut the chatter and get the trade idea to you.





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

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