GBP/JPY Technical Analysis: Spike Above 180 Fails to Hold
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- GBP/JPY Technical Strategy: Flat
- Support: 177.03, 176.25, 175.62
- Resistance: 178.28, 179.53, 180.31
The British Pound spiked higher to test above the 180.00 figure against the Japanese Yen but the move failed to have staying power. A daily close above the 100% Fibonacci expansionat 178.28 exposes the 123.6% level at 179.53. Alternatively, a turn below the 76.4% Fib at 177.03 clears the way for a challenge of the 61.8% expansion at 176.25.
Risk/reward considerations argue against entering longas prices hover just at resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.