Forex: GBP/JPY Technical Analysis – Waiting for Direction Cues
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- GBP/JPY Technical Strategy: Flat
- Support: 168.08 (50% Fib exp.), 166.79 (61.8% Fib exp.)
- Resistance: 169.37 (38.2% Fib exp.), 170.97 (23.6% Fib exp.)
The British Pound is in consolidation mode having fallen as expected against the Japanese Yen, with prices treading water above the 50% Fibonacci expansion at 168.08. A break below this boundary on daily closing basis initially 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.
Risk/reward considerations argue against entering short with prices so close to support. On the other hand, taking up the long side looks premature absent a defined reversal signal. We will continue to stand aside until a more actionable setup emerges.
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.