GBP/JPY Technical Analysis – Pound Falls Most in 2 Weeks
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- GBP/JPY Technical Strategy: Flat
- Support: 171.03 (38.2% Fib exp.), 170.57 (50% Fib exp.)
- Resistance: 171.60 (23.6% Fib exp.), 172.26 (trend line)
The British Pound turned sharply lower against the Japanese Yen after testing trend line resistance set from early March. Sellers are aiming to challenge the 38.2% Fibonacci expansion at 171.03, with a break below that exposing the 50% level at 170.57. Alternatively, a reversal back above the 23.6% Fib at 171.60 on a daily closing basis clears the way for another test of the trend line, now at 172.26.
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.