I have noted some confluence on the 4 hr chart for the Guppy. It looks like a potential swing trading opportunity to go short. Perhaps I'll hold until the end of the week.
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 bullish, 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 support level, 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.