GBP/JPY Technical Analysis – British Pound Selloff Resumes
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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:171.50 (falling trend line), 172.41 (rising trend line)
The British Pound renewed its push downward against the Japanese Yen as expected after a brief corrective rebound. Sellers are testing support at 169.86, the 38.2%Fibonacci retracement, with a break below that on a daily closing basis targeting the 50% Fib at 168.71. Falling trend line resistance is at 171.50. A move above that aims for the underside of an upward-sloping barrier set from mid-March, now at 172.41.
We entered short GBPJPY at 172.26 and took profit on half of the positionat 171.27. We continue to hold the remainder of the trade, looking to capture any further downside momentum. The stop-loss is now set at the breakeven level.
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.