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GBP/JPY Technical Analysis: Short Position Now in Play

GBP/JPY Technical Analysis: Short Position Now in Play

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/JPY Technical Strategy: Short at 192.83
  • Support: 190.91, 187.85, 185.37
  • Resistance: 192.80, 194.33, 195.87

The British Pound turned lower against the Japanese Yen as expected, breaking support guiding the uptrend since mid-April. Near-term support is at 190.91, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 187.85. Alternatively, a turn back above the 14.6% Fib at 192.80 opens the door for a challenge of 194.33 (range floor support-turned-resistance, trend line).

The break below trend line support points to continued weakness ahead and we will now enter short, initially targeting 190.91. A stop-loss will be activated on a daily close above 194.33. We will take profit on half of the position and move the stop to the breakeven level (192.83) once the first objective is met.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

--- 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.

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