Carry crosses, such as EUR/JPY and GBP/JPY, were down multiple percent today as global investors fled to what seems to be the new safe haven currency, the yen. The excessive, borderline obnoxious, weakness in EUR/JPY today drove EUR/USD into my stop losses. I positioned extremely light on this trade, so the damage was negligible. So for now, I must stand aside to survey the landscape before making my next move, but I while USD/JPY is below 107.25, I have a strong feeling that we might be cracking some USD/JPY bids like we did last summer.

We have NFP tomorrow morning at 8:30 a.m. ET. The markets are expecting a loss of 75k jobs with 5.8% unemployment. A strong deviation from these expectations will likely see this volatility continue into Friday's close.



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

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