Forex: GBP/JPY Technical Analysis – Edging Closer to 170.00 Figure
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- GBP/JPY Technical Strategy: Flat
- Support: 170.30 (trend line), 169.86 (38.2% Fib ret.)
- Resistance: 171.27 (23.6% Fib ret.), 173.56 (Mar 7 high)
The British Pound continues to sink as expected against Japanese Yen after carving out a top below the 174.00 figure. Prices are testing falling trend line resistance-turned-support at 170.30, with a break below that exposing the 38.2%Fibonacci retracement at 169.86. Alternatively, a reversal above the 23.6% level at 171.27 targets the March 7 swing high at 173.56.
Risk/reward considerations continue to argue against taking a short position with prices trading in close proximity to relevant support. On the other hand, a long position taken on the assumption that support will hold seems premature without 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.