GBP/JPY Technical Analysis – Short Trade Remains 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:171.39 (falling trend line), 172.47 (rising trend line)
The British Pound turned lower anew as expected after a short-lived recovery against the Japanese Yen. Near-term support remains at 169.86, the 38.2%Fibonacci retracement, with a daily close below opening the door for a test of the 50% Fib at 168.71. Resistance is marked by a falling trend line at 171.39. A break above that exposes the underside of an upward-sloping barrier set from mid-March, now at 172.47.
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.