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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.), 172.82 (triple top)
The British Pound has paused to consolidate losses having reversed downward as expected against the Japanese Yen after breaking trend line support set from February. A daily close below 169.86, the 38.2%Fibonacci retracement, will clear the way for a test of the 50% level at 168.71. Near-term resistance is at 171.27, the 23.6% Fib. A reversal back above this boundary aims for triple top resistance at 172.82.
We sold GBPJPY at 172.26 and took profit on half of the tradeat 171.27. The remainder of the position will remain open to capture any further weakness. The stop-loss has now been trailed to the breakeven level (172.26).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com