Forex: GBP/JPY Technical Analysis – Resistance Now Above 169.00
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- GBP/JPY Technical Strategy: Flat
- Support: 168.05 (38.2% Fib ret.), 166.45 (23.6% Fib)
- Resistance: 169.35 (50% Fib ret.), 170.64 (61.8% Fib ret.)
The British Pound is aiming to extend its advance against the Japanese Yen after prices cleared resistance marked by the 38.2% Fibonacci retracement at 168.05. Buyers now aim to challenge the 50% level at 169.35, with a push above that targeting the 61.8% Fib at 170.64. Alternatively, a turn back below 168.05 aims for the 23.6% retracement at 166.45.
The pair is trading too close to near-term resistance to make a long position viable from a risk/reward perspective. On the other hand, the short side lacks an actionable reversal signal. 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