GBP/JPY Technical Analysis: Pound Sinks to 1-Month Low
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- GBP/JPY Technical Strategy: Flat
- Support: 172.18, 171.32, 170.41
- Resistance: 173.24, 173.89, 175.35
The British Pound sank to the lowest level in a month against the Japanese Yen, slipping below the 173.00 figure. Near-term support is at 172.18, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 171.32. Alternatively, a turn above the 23.6% Fibat 173.24 opens the door for a test of the 173.83-9 area marked by a horizontal pivot in play in since late July and the 14.6% expansion.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com