GBP/JPY Technical Analysis: Consolidating Near 178.00 Mark
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- GBP/JPY Technical Strategy: Flat
- Support: 177.34, 176.35, 175.01
- Resistance: 179.31, 180.97, 182.31
The British Pound continues to oscillate in a consolidation range loosely centered at the 178.00 figure to the Japanese Yen. A daily close above the 23.6% Fibonacci expansion at 179.31 exposes the 180.69-97 area marked by the 38.2% level and the September 19 high. Alternatively, a push below rising trend lien support at 177.34 clears the way for a challenge of the 176.35-63 region bracketed by the September 23 low and the 38.2% Fib retracement.
Risk/reward considerations argue against entering shortas prices hover just above support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.