GBP/JPY Technical Analysis – Aiming at Triangle Resistance
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- GBP/JPY Technical Strategy: Flat
- Support: 171.53 (38.2% Fib exp.), 170.75 (23.6% Fib exp.)
- Resistance:172.17 (50% Fib exp.),172.80 (61.8% Fib exp., Triangle top),
The British Pound advanced to a two-week high against the Japanese Yen after putting in a bullish Piercing Line candlestick pattern. The pair has moved to challenge resistance at 172.17, the 50%Fibonacci expansion. A break above this barrier exposes 173.59, the intersection of a Triangle chart pattern top and the 61.8% level. Alternatively, a move below the 38.2% Fib at 171.53 aims for the 23.6% expansion at 170.75.
Prices are trading too close to relevant resistance to make a long trade attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com