Some nasty short squeezes in the USD/JPY and EUR/JPY have me rethinking my call that the 4th wave top is in. For now, I'm looking at wave C to complete at the equality level compared to wave A, along with .786 retracement at around 118.00. Considering we talked about Dow 13,300 resistance this morning, I am a bit hesitant to carry USD long into tomorrow's housing numbers while the Dow faces such critical resistance. For tonight, I am going to consider looking at USD/JPY longs between 116.15 and 116.00 with stops below 115.80.



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

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