Tonight I will sell GBP/JPY @ 129.55 (if we see it) with T/P @ 128.95 and S/L @ 130.10.
In my opinion this trade is a little more risky because although the price has broken support at the 129.50 level it has not managed to break and hold below the 129.25 mark and the RSI on the 4 hour chart is in the oversold territory. Now the reasons why I prefer a short at this particular level are as follows:
1. There have been 3 modest bounces from the 129.25 area with the second being about 25 pips more than the first with highs in the 129.55 area first and then 129.77 area on the second bounce and then 129.55 again showing a small H/S formation.
2.The price has remained below the 100 EMA on the 5-30 minute charts as well as the 1 hour and 4 hour chart. This tells me that bearish pressure is holding up well and may force a break of 129.25 to test recent lows in the128.80 area.
3. The supports in 129.80 and 129.50 area have been breached with 129.50 being a decent entry point and 129.80-129.90 providing additional resistance therefore a short trade is the preferred bet.
(P/L results will be posted in the corresponding comments section the following day)
P/L results = + 50 pips (sold at 129.40 tp at 128.90
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