I still feel that there is some bearish pressure on GBP/JPY preventing it from breaking 135 which is why we dropped as low as 132.38 after nearly reaching 135 last week. Tonight looks like a tough one to call which is why I am placing my order far from where we sit now. Usually I will place my order close to current levels and manually palce a trade if the price looks like it won't quite make it to my pending order. Tonight we sit right in the middle, so I am placing a sell order for GBP/JPY up at 133.35 with TP at 132.85 and SL 133.91. My basis for this trade is:
1.The price looks like it has enough momentum to break the nearest resistance at 133.15 but breaking 133,50 maybe a bigger hurdle and is also the area where the price last took a 120 pip fall yesterday.
2. The RSI on the 4 hour chart is pointing up and nearing overbought levels. with the RSI on the 5 min- 1 hour charts already overbought, it seems likely that we may see some more immediate gains before a sell off can emerge.
3. A trendline on the 30 min and 1 hour chart comes in at around 133.30, after which is the last highs around 133.40. Not much resistance after that until the 134 zone so I am hoping sellers are lined up alongside me around the 133.30-133.50 zone.
YOU CAN ALWAYS CHECK FOR RESULTS IN THE COMMENTS SECTION OF EACH TRADE
SOLD @ 133.35 TP 132.85
ReplyDeleteP/L RESULTS + 50 pips