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Talking Points:
- 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 attempting to launch a recovery against the Japanese Yen having moved lower as expected after breaking trend support set from February. Resistance is at 171.27, the 23.6% Fibonacci retracement, followed by a triple top at 172.82. Near-term support is at 169.86, the 38.2%level, with a daily close below that clearing the way for a test of the 50% Fib at 168.71.
We sold GBPJPY at 172.26 and took profit on half of the positionat 171.27. The current bounce looks corrective for now and we will keep the remainder of the trade in play to capture renewed weakness. The stop-loss has now been trailed to the breakeven level (172.26).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
