Tonight I plan to buy GBP/JPY @ 132.30 with a TP 132.80 and SL 131.80. My justification for making this trade is:
1. There has been a nice bounce from the 132.00 zone which indicates the that support in the area is strong.
2. The 100 EMA on the 4 hour chart resides in that area as well as the 38.2 Fib level which equates to multiple forms of support.
3. The RSI on the 1 hour chart is is in oversold territory while a new low has not been made below 131.95 indicating that the bulls are running out of steam.
4. The next support after 132.00 is at 131.50 and seems unattainable from these levels unless there is a clean break of 131.90 (which is possible but I'm hoping won't happen before a test of 132.80)
P/L RESULTS = - 55 pips
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