I'm already long CADJPY
, and now seems like a good time to go long GBPJPY
. Price has pulled back to the 61.8% Fibonacci retracement
from its recent swing low to swing high, and is also sitting just above its 50 SMA
, which is coinciding with a horizontal support level
. Friday's candle was also an inverted hammer
at support, which I'm interpreting as a sign that bulls are stepping in.
As such, I'm long at 172.72 with my stop at 171.87. My target profit is just above the recent highs at 175.27. I'm risking 85 to gain 255, which gives me a reward/risk of exactly 3.