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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
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.
We 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). We will let the trade develop from here, expecting continued weakness ahead.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com