Last minute change of plans with tonight's strategy. My alternate count has become the preferred count, which means we're looking for USD/JPY above 117.00 to offer into projected wave 4 resistance. Wave 2 was 77 points, which means wave 4 could be 77 points, which then lines up with trendline and .786 retracement resistance in the117.18 area. There’s a shot we head right back to the 116.35 lows from current levels of 116.89, as outlined in my earlier preferred count. But the late-day dollar strength from Bernanke's hawkish comments today has me a bit concerned. Some dollar bulls might go to work on the Tokyo open, which we will lean against to get filled at our level.

For tonight, I’m short at current levels and also offered at 117.15 with 117.45 stops for both for a move back to the 116.40 lows for the initial take profit.



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

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