GBP/JPY Technical Analysis – Pound Rises to 3-Week High
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 171.79 (23.6% Fib exp.), 169.92 (horizontal support shelf)
- Resistance: 172.82-173.19 (triple top, 38.2% Fib exp.), 174.32 (50% Fib exp.)
The British Pound advanced to a three-week high against the Japanese Yen, with chart positioning hinting at continued gains ahead. Near-term resistance lines up in the 172.82-173.19 area, marked by a triple top and the 38.2%Fibonacci expansion. A break above that exposes the 50% level at 174.32. Support is in the 171.36-79 zone, bracketed by the 23.6% Fib and a falling trend line set from early May. A turn below that aims for 169.92, a horizontal barrier in play since mid-April.
The decision to book profit on the remainder of our short trade appears to be proving prescient. Overall positioning leaves the door open for a larger downward reversal in the works however and we will tactically opt not to pursue a long position 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.