GBP/JPY Technical Analysis: July Top in the Crosshairs
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- GBP/JPY Technical Strategy: Flat
- Support: 173.72, 172.04, 170.41
- Resistance: 175.35, 176.43, 178.11
The British Pound continues to rise against the Japanese Yen, with prices closing in on July’s swing top. Near-term resistance is in the 175.07-35 area, marked by the 50% Fibonacci expansion and the July 3 high, with a break above that on a daily closing basis exposing the 61.8% level at 176.43. Alternatively, a reversal below the 38.2% Fib at 173.72 opens the door for a test of the 23.6% expansion at 172.04.
The looming Scottish Independence referendum injects an uncomfortable degree of event risk in taking a long or short Pound position at current levels. With that in mind, we will remain on the sidelines and wait for attractive opportunities to emerge after the news-flow docket clears up somewhat.
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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.