Tonight it seems that the price is on the fence. 132.50 is quite pivotal a break above could target 133.20 and above while a break lower has 131.60 as the next support and 131.00 below. I will be shorting GBP/ JPY around 132.40 with my TP 131.80 and SL 132.90. I am basing my strategy on the following circumstances:
1.There is a trendline on the 4 hour chart coming in around 132.40- 132.50 along with the 100 EMA around 132,15 which should amount to some volatitly tonight as we approach 132.40. Also the 4 hour RSI is nearing the overbought zone which indicates that the pair may probe lower.
2. The hour charts look like the pair may be setting into a 132.50-131.60 range with the 100 EMA flattening out and trendlines tightening. Selling or buying at the edges is the preferred move.
3. Lower timeframes are indicating a tug of war to bring the price above 132.50 or below 132.00. I'm thinking that 132.50 should provide good immediate resistance so I will be putting in a trail of 35 pips just incase we bounce and don't look back from 132.00.
SOLD @ 132.25 TP 131.80
ReplyDeleteP/L = + 45 pips