Aside from Aussie, Kiwi, and Sterling strength, New York saw a quiet session that found most currency pairs stronger or weaker by less than a quarter percentage point, compared to Sunday night's 5:00 p.m. ET open. We are going to continue to watch our Sterling bids, and then add our old friend USD/JPY to tonight's hit list.

The USD/JPY 4th-wave saga continues. Last night's price action formed a 5-wave triangle in b, and is looking at a breakdown of 117.60 to confirm this count. I am short a third of USD/JPY at 117.82, offering another third at 118.05, with stops for both at 118.15. On the downside, I am a stop seller for the other third at 117.56, which if done, the stop loss for anything that we're short goes to 117.85. Unfortunately, the final take profit level for the sequence is 116.80. I say unfortunately because with my new count, 116.80 completes wave d of the a-b-c-d-e triangle before one more push up in e, before wave 5 pointed at 114.00 gets underway.



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

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