We're still flopping and chopping around in a low-volume, low-volatility ping pong match. USD/JPY put in a 98.56 low overnight, a good 25 points shy of my downside taret. In today's New York session the US dollar is generally stronger, equities are hovering just south of the border, and the US bond market was also lower after a weak US government 5-year auction.

I'm trading USD/JPY on the short side today with small size, large stops, and little luck. While she's below 100.15 trendline resistance, there is a good shot to go down and have a look at the neckline support at 98.75 of the 180-minute chart Head and Shoulders. I am short at current levels with stops around 100.15 looking for the 98.75 break to add to the position. But I must stress, I am trading smaller size with low expectations until the directionality in the markets returns. There is Japanese data due tonight beginning at 7:30 p.m. ET beginning with the CPI. The markets expect 0.5% increase in March, and a 0.0% increase ex-food and energy.



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

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