Tonight my plan is to buy GBP/JPY @ 128.20 with TP@ 128.95 and SL @ 127.69.
Although the trend is definitely down, I think that 128.00 will be hard to breach from these levels. A pullback to 128.80-129.00 levels looks appropriate before downward momentum can continue. The reasons for which I predict a rise in price from these levels are:
1.The price has jumped once from 127.90 nearly 100 pips to 128.80 meaning there is decent support lying in the 128.00 area
2.The RSI is in oversold territory in the 5min-4hour charts which could allow some easing from the bears and some momentum for the bulls.
3.New lows are not being made below 128.00 and seem to be rising on the hourly charts which is also oversold. This indicates that going long from these levels is probably safer than selling.
(RESULTS POSTED TOMORROW IN THE COMMENTS SECTION)
P/L RESULTS= +64 pips
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