Tuesday, August 14, 2007 - Tokyo Update - 5:13 PM EST

The Dow closed at 13,028 as we are rapidly approaching our 12,775 target set last week .

Similarly we are below 160.50, and approaching 157.25 EURJPY target set last week. We closed at 159.08 in New York today as both EURJPY and the Dow broke down hard.

As I mentioned this morning, I went short EURJPY today at 160.48 and have since covered into the lows. I believe the 160.00 break was significant, and if this break is for real, we shall not see this level before we see 157.00. I do believe, however, that we will see a retracement back towards this level setting up our next short opportunity. For tonight, I am offering 159.80 with 160.10 stops for the multi-day trip down to 157.00. Back tomorrow morning.

Todd Gordon

Currency Strategist

GAIN Capital Group

908-731-0743

tgordon@gaincapital.com

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