The British Pound continued lower against the Japanese Yen as expected after breaking below rising trend line support set from early February. A push through support at 171.27, the 23.6% Fibonacci retracement, has opened the door for a test of the 38.2% level at 169.86. A further push beyond that targets the 50% Fib at 168.71. Alternatively, turning back above 171.27 clears the way for a retest of horizontal resistance at 172.82.
I entered short GBPJPY at 172.26 and booked profit on half of the positionat 171.27. The stop-loss on the remainder of the position has now been trailed to the breakeven level (172.26). I will let the trade develop from here, expecting continued weakness ahead.
