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Talking Points:
- GBP/JPY Technical Strategy: Short at 190.74
- Support: 189.45, 187.91, 185.42
- Resistance: 191.94, 192.99, 195.48
The British Pound is in digestion mode after attempting to turn downward against the Japanese Yen as expected. A daily close below the 14.6% Fibonacci retracementat 189.45 exposes the 23.6% level at 187.91. Alternatively, a move above the 191.45-94 area (14.6% Fib expansion, June 5 high) clears the way for a test of the 23.6% threshold at 192.99.
We entered short GBPJPY at 190.74, initially aiming for 189.45. A stop-loss will be triggered on a daily close above 191.94. We will take profit on half of the trade and adjust the stop-loss to the breakeven level when the first target is hit.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com