Forex: GBP/JPY Technical Analysis – March Top in the Crosshairs
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- GBP/JPY Technical Strategy: Flat
- Support: 171.46 (38.2% Fib exp.), 170.05 (23.6% Fib exp.)
- Resistance: 172.61 (50% Fib exp.), 173.56-75 (Mar 7 high, 61.8% Fib exp.)
The British Pound continued to push higher against the Japanese Yen, taking out resistance at 141.46 marked by the 38.2%Fibonacci expansion to expose the 50% level at 172.61. A further push beyond that targets the March 7 high at 173.56, followed by the 61.8% Fib at 173.75. Alternatively, a reversal back below 171.46 aims for the 23.6% expansion at 170.05.
The near-term trading range is 115 pips while 20-day ATR is at 137 pips, warning of an undue skew in risk/reward parameters when using a stop-loss activated on a daily closing basis (as is the case with our strategy). With that in mind, we will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com