GBP/JPY Technical Analysis: First Target Hit on Short Trade
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- GBP/JPY Technical Strategy: Short at 192.83
- Support: 187.85, 185.37, 182.89
- Resistance: 190.91, 192.80, 194.33
The British Pound gapped to the lowest level in a month against the Japanese Yen, with sellers now eyeing support below the 188.00 figure. Near-term support is at 187.85, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 185.37. Alternatively, a turn back above the 23.6% Fib at 190.91 opens the door for a challenge of the 14.6% retracement at 192.80.
We sold GBPJPY at 192.83. Prices have now met their initial target and we have taken profit on half of the position. The remainder of the position will remain in play to capture any further on-coming weakness with a stop-loss adjusted to the breakeven level.
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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.