GBP/JPY Technical Analysis – Profit Booked on Short Trade
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- GBP/JPY Technical Strategy: Flat
- Support: 169.92 (horizontal support shelf)
- Resistance:171.79 (23.6% Fib exp.), 172.82-173.19 (triple top, 38.2% Fib exp.)
The British Pound may be setting up a larger recovery against the Japanese Yen after prices broke trend line resistance set from the May 2 high. Buyers are testing the 23.6% Fibonacci expansion at 171.79, with a daily close above that exposing the 172.82-173.19 area marked by a triple top and the 38.2% level. The first major layer of support comes in at 169.92, a horizontal barrier in play since mid-April.
We sold GBPJPY at 172.26 and took profit on half of the positionat 171.27. We will now take profit on the remainder of the trade, booking an additional 58 pips. Recent gains may yet prove to be corrective in the context of a larger decline and we will be on the lookout for new selling opportunities in the days ahead.
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.