USD/JPY put in a 115.73 high approaching our 115.80 short level, and is currently trading 116.20. At the same time, EUR/JPY put in a 154.19 high print testing Monday's 154.18 Wave 1 low. Remember, in a true Elliott Wave count, wave 4 high cannot breach wave 1 territory. Add a .786 retracement at 154.17 to the mix and you have a pretty sweet setup. I am short EUR/JPY at 153.10 with stops at cost. The yen products were sold for the 12:00 p.m. ET fix, along with the equity markets all going red on the session, so I would expect a shortable bounce back to 154.00 area. Keep stops above 154.25.

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

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