Forex: GBP/JPY Technical Analysis – 168.00 Figure Under Fire
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- GBP/JPY Technical Strategy: Flat
- Support: 166.45 (23.6% Fib ret.), 164.93 (trend line from Aug’13)
- Resistance: 168.05 (38.2% Fib ret.), 169.35 (50% Fib ret.)
The British Pound is attempting to prolong its push higher against the Japanese Yen, with prices probing above the 38.2% Fibonacci retracement at 168.05. A break higher above this barrier on a daily closing basis initially targets the 50% level at 169.35. Alternatively, a reversal below the 23.6% Fib at 166.45 exposes rising trend line support at 165.06.
Entering long seems premature absent confirmation of an upside breakout but a short position appears likewise unattractive without a defined reversal signal. Furthermore, the Yen’s sensitivity clouded risk appetite trends warn against taking directional bets on fundamental grounds. We will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com