Late day carry trade weakness has pulled EURJPY down through the last acceptable support level that allows us to call this upwards-trending correction still intact. Below 157.50 and I will be 95% confident that the test of .618 retracement at 159.21 was the wave ‘4’ top. More specifically, my 15 min chart wave count calls for a move down to 157.50, followed by a 3-wave move up towards 158.50 that we will be looking to aggressively position short trades. So for now, we sit on our hands.



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

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