GBP/JPY Technical Analysis: Testing Key Support Above 172
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- GBP/JPY Technical Strategy: Flat
- Support: 172.39-64, 171.79, 170.64
- Resistance: 173.33, 174.01, 174.87
The British Pound pulled back after rebounding as expected against the Japanese Yen, testing the upswing’s guiding trend line. A daily close belowthe 172.39-64 area marked by a horizontal support shelf, a rising trend line and the 50% Fibonacci expansion exposes the 23.6% level at 171.79. Alternatively, a reversal above the 50% Fib at 173.33 clears the way for a challenge of the 61.8% expansion at 174.01.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
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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.