The market has an incredible ability to hide its hand just long enough that traders get worn down, frustrated, or bored and walk away from a position that will eventually be a big winner. I have been watching EUR/JPY and USD/JPY move into significant daily resistance zones for almost a week now looking for an entry. The night before I take off for vacation and have completely given up on selling the yen products what happens? They both implode for about 150 points in one London session. Sometimes the markets can have a really sick sense of humor. Isn't it great?

From the time of publication last night, EUR/JPY traded about 140 points lower and has since retraced almost three-quarters of the losses. That's what I call a trader's market. The 30-min chart offered a very nice 166.30 resistance level to get short for continuation lower. For now, EUR/JPY should remain below 166.30 to continue favoring the short side. Brian will be taking over for me for the rest of the week as I go on vacation knowing that EUR/JPY got the better of me - this time around. But next week will be a different story.



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.