GBP/JPY Technical Analysis: Short Position Now in Play
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- 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.
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--- 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.