Looking at our usual suspects, EUR/USD, USD/JPY, and EUR/JPY, I can make a case for lower prices in all three. EUR/JPY has the cleanest wave count, but has retraced the most of the 900-point meltdown, indicating relative strength. USD/JPY has retraced the least of its move down from last night, indicating relative weakness, but is showing the least clear wave count. And EUR/USD has been the dog of the last week with a decent count, but lousy price dynamics. I have been scalping this market to pieces in the last three days, but have not really taken a position. Basically, I find myself at a technical crossroad.

EUR/JPY should be a decent short while below 155.40, but a move back towards the 156.00 breakdown point could be in the cards. I am opting to sit on my hands tonight and watch price action develop. If you like the EUR/JPY trade idea, look to keep stops around 155.55, and take partial profits at 154.60 channel support.

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.