Daily EUR/JPY is facing significant technical resistance in this possible 5th wave from 3 different sources after the failed attempt on 167.00. We are looking at a possible completion of a 5-wave sequence within the longer-term 5th wave. Wave 1 traveled 494 points, and in many cases wave 5 will terminate after a similar distance traveled to that of wave 1. Wave 1 distance projected from the low of wave 4 equals a wave 5 target of 166.50. Further, we have trendline resistance containing the uptrend as RSI has been diverging lower signaling a possible price reversal.

Personally, I am not going to issue a trade recommendation on this because frankly, I am not seeing the markets as clearly in here as I was in the first half of 2007. I will be updating tomorrow, but will be taking vacation beginning Tuesday night and returning Sunday night, July 1. Sometimes, a few days away from the markets can make things look completely different when you return recharged, with a fresh perspective.



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.