GBP/JPY Technical Analysis: Slowly Inching Downward
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- GBP/JPY Technical Strategy: Short at 192.83
- Support: 190.91, 187.85, 185.37
- Resistance: 192.80, 194.93, 195.87
The British Pound is making cautious downward progress against the Japanese Yen after breaking two-month rising trend support. A daily close below the 23.6% Fibonacci retracementat 190.91 exposes the 38.2% level at 187.85. Alternatively, a reversal above the 14.6% Fib at 192.80 clears the way for a test of the 194.33-93 area (range floor support-turned-resistance, trend line).
We entered short GBPJPY at 192.83, initially aiming for 190.91. A stop-loss will be triggered on a daily close above 194.33. We will book half of the position and adjust the stop-loss to breakeven (192.83) prices reach the first target.
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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.