GBP/JPY Technical Analysis: Pound Drops Most in 2 Years
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- GBP/JPY Technical Strategy: Short at 192.83
- Support: 185.37, 182.89, 179.82
- Resistance: 187.85, 190.91, 192.80
The British Pound continued to sink against the Japanese Yen as expected, producing the largest daily decline in over two years. A daily close below the 50% Fibonacci retracementat 185.37 exposes the 61.8% level at 182.89. Alternatively, a reversal above the 38.2% Fib at 187.85 clears the way for a test of the 23.6% retracement at 190.91.
We entered short GBPJPY at 192.83 and have since booked profit on half of the position. The rest of the trade will remain open to take advantage of any further weakness ahead. The stop-loss has been moved 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.