The stop that was triggered last night was surprising only because of the extent of the fall and the lack bounce throughout the descent. A 50 pip loss taken.
Tonight is a unusually difficult trade to call. I would like to buy around 127.70 where there should be some decent support but also feel that due to the lack of bounce a sell around 128.20 is a good play as well. I am deciding to to go with the momentum and sell GBP/JPY around 128.30 - 128.40 with aTP around 127.60 - 127.70 SL close to 128.80 - 128.90.
The daily and 4 hour charts are showing bullish signals with thr RSI and trend lines on the daily and 4 hour charts. The hour charts is showing the RSI reaching overbought levels and not much upward movement at all. in the price. the trend line around 127.75 looks breached and next up 128.50 zone. 100 EMA is also high up around 129.00 on the hourly.
The shorter time frames look to be turning around and flatlining but I'm assuming that sellers will want to test 127.75 again due to lack of support, so another dip is likely. Trend lines come 128.15 -128.30 and 127.50 region on the downside. 100 EMA flatening out as well.
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