Last night's trade was a perfect example of how profitable a break can be. Although I usually don't trade breaks last night was just a matter of right place at the right time. When I opened my platform yesterday the price was around 129.45 and the EMA's and RSI were bearish, the result was a clean 65 pips in about 2 hours.
Tonight I think that the bears will be squeezed a bit and any test of the 129.00 region will be met with buyers. My strategy is buy GBP/JPY in the 129.10 - 129.20 zone with a TP around 129.70 - 129.80 and SL 128.60 - 128.70.
The daily chart is looking a little oversold and the 4 hour chart is showing some bullish momentum while the price probes below 129.00 where there also support via trend line. The 1 hour chart is looking more positive today and seems to be forming a base around 128.90. It looks like 129.30- 129.50 will be taken with relative ease and the next barrier is around 129.75 where I hope to take my profit.
The smaller timeframes are now building higher highs and creeping up to the 100 EMA. 129.30 - 129.40 is key if were going to test 129.75. We may also be in for a range bound session by the looks of the 5 minute chart but lets hope its a 129.20 - 129.80 range not a 129.40 -128. 70 one. Use caution this a counter trend trade.
No comments:
Post a Comment