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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 177.26, 175.77, 174.87
- Resistance: 178.74, 179.94, 181.14
The British Pound continues to push upward against the Japanese Yen, with prices battering resistance below the 179.00 figure once again. A daily close above the 38.2% Fibonacci retracement at 178.74 exposes the 50% level at 179.94. Alternatively, a reversal below the 23.6% Fib at 177.26 opens the door for a test of the 175.77-176.35 area (triple bottom, 14.6% retracement).
The dominant GBPJPY trend seems to favor weakness following the breach of the 12-month uptrend established from February 2014 lows. As such, we will treat the current upswing as corrective and wait for an actionable short trade setup to emerge.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
