I had a feeling the market's pent up fears of the mortgage situation would send those risk-adverse traders long equities and carry trades running for cover, and run they did. EUR/JPY shed about 100 points, or .60%, on the session, and the Dow Jones Industrial finished the day 226 points lower, or 1.62%. I had a very nice day today on the EUR/JPY short from this morning, along with a USD/JPY short targeting that 119.75 level shown below. For tonight, I am going to concentrate on selling EUR/JPY back into the key 166.45-55 breakdown level. I am loaded up to sell 166.35, 166.45, 166.55 with 166.65 stops for all three, and corresponding OCO limits at 165.75, 165.55, and 165.25.



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

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