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Talking Points:
– GBP/JPY Technical Strategy: Short at 172.26
– Support: 169.86 (38.2% Fib ret.), 168.71 (50% Fib ret.)
– Resistance: 171.27 (23.6% Fib ret.), 172.82 (triple top)
The British Pound has rebounded against the Japanese Yen after a downward turn, but gains seem to be corrective. Resistance is identified by a trend line cluster in the 171.91-172.07 area, with a break above that potentially exposing a triple top at 172.82. Near-term support is at 169.86, the 38.2% Fibonacci retracement level. A move below that could lead to a challenge of the 50% Fib at 168.71.
We sold GBPJPY at 172.26 and took profit on half of the position at 171.27. The downtrend, characterized by lower highs and lower lows since May 2, remains intact. Therefore, we will keep the remainder of the trade active with a stop-loss set at the breakeven level (172.26).
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GBP/JPY Technical Analysis – Bounce Seen as Corrective
Daily Chart – Created Using FXCM Marketscope 2.0
– Written by Ilya Spivak, Currency Strategist for DailyFX.com
Original Source:
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