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- GBP/JPY Technical Strategy: Flat
- Support: 171.92 (38.2% Fib ret., Triangle floor), 171.44 (50% Fib ret.)
- Resistance:171.71-82 (Mar 6 high, Triangle top)
The British Pound remains in consolidation mode against the Japanese Yen, with price action becoming increasingly narrow within the bounds of a large Triangle chart formation. Initial support is at 171.92, the 38.2% Fibonacci retracement, a barrier reinforced by the Triangle bottom. A daily close below that aims for the 50% level at 171.44. Resistance lines up in the 172.71-82 area, marked by the Triangle top and a horizontal ceiling set from the March 6 top.
While a Triangle pattern implies uptrend continuation in this scenario, the pattern must be confirmed on a daily close above its upper boundary to be actionable. With that in mind, we will hold off on taking a trade for the time being and remain on the sidelines.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com