GBP/JPY Technical Analysis – All Eyes on Trend Resistance
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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:171.62 (falling trend line), 172.82 (triple top)
The British Pound is trying to launch a recovery against the Japanese Yen after testing support just below the 170.00 figure. Falling trend line resistance is at 171.62, with a daily close above that clearing the way challenging a triple top at 172.82. Alternatively, a break below the 38.2%Fibonacci retracement at 169.86 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.