Let's continue on with our bias for a higher carry trade into our 4th wave targets of EUR/JPY 157-160 and USD/JPY 116-117. The markets, relatively speaking, are quiet compared to what they have been in the last few weeks. But the wave counts strongly suggest that higher prices are likely before we retest those battleground lows.

I write quickly because EUR/JPY has pulled down into deep support at 153.55 and I want to get this trade idea out to you as quickly as possible. I am long EUR/JPY from 163.55 with stops at 163.30. I believe EUR/JPY should test the upper-end of the b-wave triangle at around 154.75, at the minimum. If my count is correct, we can expect 5 waves up similar in length, or .61.8% of, the 5 waves up we saw from 149.00 to 156.00. At 154.00 I will trail my stop to cost.



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.