GBP/JPY Technical Analysis – Support Above 171.00 Tested
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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.), 172.24 (trend line)
The British Pound reversed downward against the Japanese Yen, recoiling from trend line resistance originating in early March. A daily close below the 38.2% Fibonacci expansion at 171.03 targets the 50% level at 170.57. Alternatively, a reversal back above the 23.6% Fib at 171.60 opens the door for another test of the trend line, now at 172.24.
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 for now, waiting 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.