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- GBP/JPY Technical Strategy: Short at 172.26
- Support: 169.86 (38.2% Fib ret.), 168.71 (50% Fib ret.)
- Resistance:171.27 (23.6% Fib ret.), 172.55 (trend line)
The British Pound declined as expected against the Japanese Yen after breaking below rising trend line support set from early February. A break below support at 171.27, the 23.6% Fibonacci retracement, has exposed the 38.2% level at 169.86, with a further push beyond that eyeing the 50% Fib at 168.71. Alternatively, reversing back above 171.27 clears the way for a retest of the trend line, now at 172.55.
We entered short GBPJPY at 172.26. We have now booked profit on half of the position at 171.27 and trailed the stop-loss on the remainder of the position to the breakeven level (172.26). We will let the trade develop from here, expecting the down move to continue.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com