I've broken my reasoning up into three areas below:
- 21/9 MA's have recently crossed
- Key Fib level lines up with resistance/support
- Broken support now turned resistance
Although my fundamental view of GBPJPY is , we have recently made a lower high on the 4 hr and if resistance holds I think we could see a move lower to the next , around the 170.80's area.
I don't normally trade against the larger trend, however as this set up meets my trading criteria I have decided to take a small position.
There is also a good risk/reward ratio. It may not suit smaller accounts if the loss will consume more than 1% of your account size.