We're long EUR/JPY following the 2:00 p.m. ET FOMC reaction low from 160.15, as we trade 160.35. I have pulled the stop up to just below the reaction low to 160.05. Longer term, I believe we are quickly approaching 160.70 Fib projection resistance to complete wave 3, before a 4th wave correction lower sets in. Tonight's move could possibly travel as far as 161.19. 161.19 is derived from a smaller degree internal wave symmetry described below.



5 waves up beginning from March 29 low are currently unfolding. Symmetry is a real possibility between waves 1 and waves 5, which projects the end of 5 to be at 161.19. If, on the other hand, the market heads straight lower from current levels of 160.36, this is 61.8% of distance of wave 1, and certainly an acceptable termination of wave 5. Plus, we are only risking about 10 points total on this trade.

For tonight, I would like to book partial profits at 160.70, move the stop to 160.35, and then try for the homerun at 161.20.



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

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