USD/JPY moved through our 118.15 stops and has officially broken the topside of this month-long, 4th wave consolidation. But before the dollar bulls can concede victory, we have yet to face the most technically significant resistance this wave 4 will know.

There are a pair of symmetrical projections equaling 326 points and 202 points projecting 119.05-119.15 to be the end of this wave 4. Added to which, .618 retracement of the big wave 3 down calculates out to be in the same neighborhood, at 119.14. I can all but promise you the market will at least hesitate at this level, if not fully reverse. I will continue to play USD/JPY to the downside while 119.15 contains the advance. I am offered at 119.05 and 119.15, with 119.35 stops.

We are also looking to get short dollars against Sterling. An A-B-C move to 1.9705 will trigger my resting bid with a 1.9650 stop. I will be looking to add to this position once we have confirmation that buyers are back at work.

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

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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.