The pounds sold short term at the open of the Asian market through London session today. It was close to the New York open that we really started to rally higher from the day's low. Right around the 154.35 are two levels sitting on-top of each other where the chart shows that there is significant amount of selling than buying after trading sideways for a while and then strongly dropping away from the level. On the larger time frame, the 50 period moving average is slopping down indicating that we are still in a down trend (based on 4 hours). I expect price to rally into the price level mentioned above to close the New York session for today, after which I will short the GBPJPY. The risk is low and the profit margin is wide with high probability of working out.
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price broke through this level and created a bullish engulfing candle out of the zone after ranging there. Looking for reversal to this level for a potential on position. First target will be the high created before the pullback, and the stop will be just below the lowest candle in the range.