GBP/JPY Technical Analysis: Eyeing Support Below 188.00

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Talking Points:

• 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 resumed its move downward against the Japanese Yen as expected after prices produced a bearish continuation In Neck candlestick pattern. 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 and have since taken profit on half of the trade. 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