Forex: GBP/JPY Technical Analysis – Stalling at Trend Line Support
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- GBP/JPY Technical Strategy: Flat
- Support: 168.08-47 (50% Fib exp., trend line), 166.79 (61.8% Fib exp.)
- Resistance: 169.37 (38.2% Fib exp.), 170.97 (23.6% Fib exp.)
The British Pound is stalling at rising trend line support set from August 2013 (168.47) after falling as expected against the Japanese Yen. The downside barrier is bolstered by the 50% Fibonacci expansion at 168.08. A break below this boundary exposes the 61.8% level at 166.79. Alternatively, a turn above resistance at 169.37 – the 38.2% Fib – targets the 23.6% expansion at 170.97.
Prices are too close to relevant near-term up- and downside technical barriers to make a trade at current levels attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for a more attractive setup to present itself.
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.