Forex: GBP/JPY Technical Analysis – Treading Water Above 164.00
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- GBP/JPY Technical Strategy: Flat
- Support: 163.87 (Feb 4 low)
- Resistance: 166.17 (23.6% Fib ret.), 167.24-60 (channel bottom, 38.2% Fib ret.)
The British Pound edged higher against the Japanese Yen to test resistance at 166.17, the 23.6% Fibonacci retracement. A break above this barrier on a daily closing basis targets the 167.24.60 region (marked by the underside of a previously broken falling channel and the 38.2% Fib). Near-term support is at 163.87, the February 4 low.
Entering long here remains unattractive from a risk/reward perspective as prices hover within a hair of near-term resistance. Alternatively, taking a trade on the short side appears to be premature without a clear-cut bearish reversal signal. We will remain in wait-and-see mode for now until something more tangible presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com