GBP/JPY Technical Analysis: Short Position Now in Play

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Talking Points:

• GBP/JPY Technical Strategy: Short at 190.74
• Support: 189.45, 187.91, 185.42
• Resistance: 191.45, 192.99, 195.48

The British Pound turned lower against the Japanese Yen as expected, breaking below a rising trend line guiding the move higher since mid-April. Near-term support is at 189.45, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 187.91. Alternatively, a reversal above the 14.6% Fib expansion at 191.45 opens the door for a challenge of the 23.6% threshold at 192.99.

We will now enter short, initially targeting 189.45. A stop-loss will be activated on a daily close above the June 5 high at 191.94. We will book profit on half of the position and move the stop-loss to breakeven once the first objective is reached.

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com