Forex: GBP/JPY Technical Analysis – Resistance Above 172.00 Eyed
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- GBP/JPY Technical Strategy: Flat
- Support: 169.35 (50% Fib ret.), 168.05 (38.2% Fib ret.)
- Resistance: 170.64 (61.8% Fib ret.), 172.24 (76.4% Fib ret., trend line)
The British Pound is attempting to renew its push higher against the Japanese Yen after three days of consolidation. A close above resistance at 170.64, the 61.8% Fibonacci retracement, exposes the 76.4% level at 172.24. This barrier is reinforced by a falling trend line set from the January 2 high. Alternatively, a reversal back below 170.64 sees near-term support at 169.35, the 50% Fib.
Entering long here looks premature absent confirmation of an upside breakout on a daily closing basis. On the other hand, fighting upside momentum by taking up the short side seems ill-advised absent a defined 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