Forex: GBP/JPY Technical Analysis – Support Below 171.00 Held
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- GBP/JPY Technical Strategy: Flat
- Support:170.97 (23.6% Fib exp.), 169.37 (38.2% Fib exp.)
- Resistance: 173.13-56 (Mar 7 high, Apr 3 high)
The British Pound reversed downward against the Japanese Yen having once again encountered resistance below the 174.00 figure. The pair is testing support at 170.97, the 23.6% Fibonacci expansion, with a breach of this barrier on a daily closing basis exposing the 38.2% level at 169.37. Initial resistance is in the 173.13-56 area, marked by the March 7 and April 3 swing highs.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal argues against taking up the long side. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com