Forex: GBP/JPY Technical Analysis – Pound Down to 2-Month Low
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- GBP/JPY Technical Strategy: Flat
- Support: 164.23 (38.2% Fib ret.), 160.96 (50% Fib ret.)
- Resistance: 167.42-168.28 (channel floor, 23.6% Fib ret.), 170.78 (14.6% Fib ret.)
The British Pound accelerated lower, sinking to the lowest level in over two months against the Japanese Yen. A daily close below support at 164.23, the 38.2% Fibonacci retracement, exposes the 50% level at 160.96. Near-term resistance is now in the 167.42-168.28 area, marked by bottom of a broken falling channel and the 23.6% Fib.
Entering short at current levels looks unattractive from a risk/reward perspective with prices squarely at relevant support. Alternatively, attempting to pick a bottom and entering long seems premature absent a clear-cut reversal signal. We will opt to stand aside for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
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