We haven't seen this kind of price action in months. From the high bid in London to the low bid in New York, USD,JPY traveled a total distance of 251 points. For a while there, it felt like the dollar didn't have a buyer on the whole floor. The last time we saw an intra-day range of this size was Feb 27, when the Shanghai equity markets brought the DJIA down 4% at the close. That day USD/JPY traveled a total of 324 pips.

I've written extensively about how critical 122.10 was, and today's price action following the break of 122.10 most definitely confirmed its significance. We were loaded to short USD/JPY at 122.38, 48, and 58, but the reaction high was 122.33 - just 5 points shy - before USD/JPY absolutely melted to the 120.95 low.

For tonight, USD/JPY has come back fairly well bid towards guess which level? Yep, you guess it - 122.10. I will be looking to sell ahead of 122.00, at around 121.90, with stops above 122.25.



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.