We have a busy week ahead of us that includes interest rate announcements from the Bank of Japan and the European Central Bank. The dollar is facing several key levels against the yen and euro that will need to be breached in order for the strength following Friday's better-than-expected NFP report to continue.

USD/JPY is facing channel resistance at the. 786 retracement at 120.25. Above this level, and the 122 area highs are all but assured.



Against the euro, the party gets started a little closer to the current market than against yen. Just 20 pips below us lies channel support at 1.3345 which if broken, opens the door for a move into 1.3100. I would like to watch price action at 1.3345 before formulating our next game plan.



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.