Tonight I will buy GBP/JPY @ 129.50 with TP @ 130.04 ans SL @ 128.99.
I think a test of 130.15 zone is likely based on the following factors:
1. Price has broken above declining trend line on the 4 hour chart at around 129.50 Next point of resistance is in the 130.15 area where previous high have been seen.
2.The 100 EMA has been smashed on the 15min-1 hour charts signaling that momentum in the near term is up.
The price also has remained above the 100 EMA for the past 12 hours on the 15min- 1 hours which should equate to a pop higher during the Europe session.
3.Hourly Trendline and EMA converge around the 129.40 area. Combined these two variables should provide enough support for the up trend to continue at least up to the 130.00 zone.
4. 5min- 30 min RSI are in oversold territiory while the price holds above the 100 EMA. RSI on the 4 hour is pointing up and not at the top of it's range meaninig there is room for the price to go up a bit before a reversal.
130.00 seems to be magnetic and looks to be in play tonight therefore a buy is a better bet from these levels.
P/L RESULTS= + 50 pips
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