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Talking Points:
- GBP/JPY Technical Strategy: Short at 192.83
- Support: 190.91, 187.85, 185.37
- Resistance: 192.80, 194.33, 195.87
The British Pound recovered after gapping below the 190.00 figure against the Japanese Yen but a bearish In Neck candlestick pattern hints at deeper losses ahead. A daily close below the 23.6% Fibonacci retracementat 190.91 exposes the 38.2% level at 187.85. Alternatively, a reversal above the 14.6% Fib at 192.80 clears the way for a test of range floor support-turned-resistance at 194.33.
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
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