GBP/JPY Technical Analysis – 3-Month Resistance Tested
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- GBP/JPY Technical Strategy: Flat
- Support: 171.95 (61.8% Fib ret.), 171.49 (50% Fib ret.)
- Resistance: 172.28 (trend line), 172.52 (76.4% Fib ret.), 17.45 (May 2 high)
The British Pound may be exhausting its advance against the Japanese Yen as prices test trend line resistance dating back to early March (172.28). A break above this barrier on a daily closing basis exposes the 76.4% Fibonacci expansion at 172.52, followed by the May 2 high at 173.45. Near-term support is at 171.95, the 61.8% Fib, with a move below that initially targeting the 50% level at 171.49.
The available trading range is too narrow to justify a trade on the long or the short side from a risk/reward perspective. We will remain on the sidelines and wait for a more attractive opportunity 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.