Forex: GBP/JPY Technical Analysis – Pound Scores Seventh Up Day
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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 continues to advance against the Japanese Yen, clearing the 38.2% Fibonacci expansion at 171.46 to target the 50% level at 172.61. A daily close above this boundary clears a path to the March 7 high at 173.56, followed by the 61.8% Fib at 173.75. Alternatively, a turn back below 171.46 aims for the 23.6% expansion at 170.05.
Risk/reward considerations argue against entering long while prices trade so close to relevant resistance. On the other hand, a short position lacks an actionable downward reversal signal to suggest that resistance will hold. As such, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com