A 160.85 high in EUR/JPY last night was good enough for us to take profits on a half position at our first target of 160.70. We were long from 160.15, so we pulled down +55 pts on half, and then stopped on the balance at 160.35 for +20 points on the other half.

We have booked almost 2 big figures in profit between GBP/USD and USD/JPY this week. The markets are moving nicely, be we are also trading with what I like to call "controlled aggression." We are not trading with reckless abandon, but rather with conviction, persistence, and a plan. When the markets are moving, you need to be there, because next week, they could easily fall into a range.

EUR/USD broke through a very significant level this morning. 1.3500, aside from obvious reasons, is technically very significant. Many watch the traditional Fib ratio 61.8% in terms of a simple retracement. The real hidden secret known to few in the markets is the square root of .618 and 1.618. The square root of .618 is .786, and that level was tested perfectly in mid-February this year at 1.3259. EUR/USD then traded down to a 1.3074 low on Mach 5. Once broken, it turned to serve as support in mid March bringing this breakout higher to test of the square root of its inverse, 1.618. The square root of 1.618 is 1.272, and that level comes in at this mornings 1.3505 area highs. This could be development as significant as the mid-February failure at 1.3259.

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.