GBP/JPY Technical Analysis – Yen Drop vs. Pound Continues
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- GBP/JPY Technical Strategy: Flat
- Support: 171.79 (23.6% Fib exp.), 171.27 (trend line) 169.92 (support shelf)
- Resistance: 172.82-173.19 (triple top, 38.2% Fib exp.), 174.32 (50% Fib exp.)
The British Pound continues to push higher against the Japanese Yen, hitting the highest level in three weeks. Prices are targeting resistance in the 172.82-173.19 area, marked by a triple top and the 38.2%Fibonacci expansion. A daily close above this barrier targets the 50% level at 174.32. Alternatively, a reversal below the 23.6% Fib at 171.79 aims for falling trend line resistance-turned-support at 171.27.
We opted to take profit on our short GBP/JPY position earlier in the week but remain broadly unconvinced of the upside scenario, particularly with heavy event risk in the form of the US jobs report on tap. As such, we will remain flat 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.