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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 is in digestion mode above 170.00 to the Japanese Yen having reversed downward as expected after a break of trend line support. Near-term support is at 169.86, the 38.2%Fibonacci retracement, with a break below that opening the door for a test of the 50% level at 168.71. Resistance is marked by the 23.6% Fib at 171.27. A turn back above that targets triple top 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