GBP/JPY Technical Analysis – Resistance Below 173.00 in Focus
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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 continues to push higher against the Japanese Yen after putting in a bullish Piercing Line candlestick pattern. Prices are testing above resistance at 172.17, the 50%Fibonacci expansion, with a breach above that on a daily closing basis exposing the intersection of a Triangle chart pattern top and the 61.8% level at 172.80. Alternatively, a reversal below the 38.2% Fib at 171.53 targets the 23.6% expansion at 170.75.
Risk/reward considerations argue against taking a long position with prices trading so close to relevant resistance. We will remain flat for the time being, waiting for a more attractive setup to present itself.
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.