EUR/JPY and USD/JPY remain comfortably contained in corrective wave formations. But the strength of the wave count and market volatility within the corrections are sufficient to justify taking on risk. USD/JPY, while below 117.85, is targeting trendline support well below us at 116.50. But first, minor wave b needs to play out into this morning's 117.60 breakdown point. This will serve as our entry zone. I am offering USD/JPY in halves at 117.55 and 117.65 with 117.85 stops for an initial take profit and stop move level of 117.25.

EUR/JPY is also offering a chance to get short into this morning's 156.35 breakdown level. In fact, wave 4 should not exceed last night's 156.43 wave 1 low. The .618 retracement of the entire sequence thus far also falls in at this level. Due to strength of EUR/USD, I am a bit more apprehensive to be short EUR/JPY, as opposed to USD/JPY, in this market. So on half-sized positions, let's look to get short EUR/JPY at 156.35 with 156.55 stops. Final target of this entire 3-3-5 flat correction is 155.23, so look to close it all down in here.

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.