GBP/JPY Technical Analysis – Short Position Still Active
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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:171.81-172.15 (trend line cluster), 172.82 (triple top)
The British Pound corrected higher against the Japanese Yen after declining as expected but upside momentum appears corrective at this point. Resistance is marked by a trend line cluster in the 171.81-172.15 area. A daily close above the latter level clears the way for a test of triple top resistance at 172.82.Initial support comes in at 169.86, the 38.2%Fibonacci retracement. A break below that exposes the 50% Fib at 168.71.
We sold GBPJPY at 172.26 and took profit on half of the positionat 171.27. The series of lower highs and lower lows – the definition of a down trend – initiated from the May 2 peak remains in place. As such, we will keep the remainder of the trade in play with a stop-loss set to the breakeven level (172.26).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.