GBP/JPY Technical Analysis – Triangle Top Under Fire
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- GBP/JPY Technical Strategy: Flat
- Support: 172.17 (50% Fib exp.), 171.53 (38.2% Fib exp.)
- Resistance:172.80 (61.8% Fib exp., Triangle top), 173.59 (76.4% Fib exp.)
The British Pound advanced for a sixth consecutive day against the Japanese Yen, moving to test key resistance at 172.80. This barrier is marked by the intersection of a Triangle chart pattern top and the 61.8% Fibonacci expansion. A break upward on a daily closing basis initially exposes the 76.4% level at 173.59. Alternatively, a reversal below the 50% Fib at 172.17 targets the 38.2% expansion at 171.53.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. 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