GBP/JPY Technical Analysis: Waiting to Re-Enter Short

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 191.79, 190.20, 188.92
• Resistance: 194.33, 195.87, 197.57

The British Pound may be resuming its down trend against the Japanese Yen after finding resistance above the 194.00 figure. A daily close below the 23.6% Fibonacci expansion at 191.79 exposes the 38.2% level at 190.20. Alternatively, a move above the July 17 high at 194.33 clears the way for a test of the June 24 top at 195.87.

We entered short GBPJPY at 192.83 and have since booked profit on half of the position. The rest of the trade has since closed at the breakeven level. From here, we will look for a new opportunity to re-enter short once a compelling setup presents itself.

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com