Forex: GBP/JPY Technical Analysis – Sideways Trade Continues
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- GBP/JPY Technical Strategy: Flat
- Support: 168.08-83 (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 continues to tread water having fallen as expected against the Japanese Yen, with prices oscillating above the 50% Fibonacci expansion at 168.08. Support is reinforced by a rising trend line set from April 2013 (168.83). A break downward on daily closing basis initially aims for the 61.8% level at 166.79. Alternatively, a turn above resistance at 169.37 – the 38.2% Fib – exposes 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.