Forex: GBP/JPY Technical Analysis – Rally Stalls Below March High
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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 is stalling below the March swing high against the Japanese Yen after eight consecutive days in positive territory. Near-term resistance is at 172.61, the 50%Fibonacci expansion, with a break above that aiming for the 173.56-75 area marked by March 7 high and the 61.8% level. Initial support is at 171.46, the 38.2% Fib, with a daily close below that targeting the 23.6% expansion at 170.05.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.