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Forex Strategy: GBPJPY Short Trade Still Active

May 16, 2014

Ilya Spivak







The British Pound continued lower against the Japanese Yen as expected after breaking below rising trend line support set from early February. A push through support at 171.27, the 23.6% Fibonacci retracement, has opened the door for a test of the 38.2% level at 169.86. A further push beyond that targets the 50% Fib at 168.71. Alternatively, turning back above 171.27 clears the way for a retest of horizontal resistance at 172.82.





I entered short GBPJPY at 172.26 and booked profit on half of the positionat 171.27. The stop-loss on the remainder of the position has now been trailed to the breakeven level (172.26). I will let the trade develop from here, expecting continued weakness ahead.



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Source: DailyFx


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