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GBP/JPY Technical Analysis: Pound Drops for Third Day

GBP/JPY Technical Analysis: Pound Drops for Third Day

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.32, 170.41, 169.33
  • Resistance: 172.18, 173.24, 173.89

The British Pound continues to push lower against the Japanese Yen, with prices dropping to set a new monthly low. A daily close below the 50% Fibonacci expansion at 172.18 exposes the 170.41-46 area marked by the August 15 low and the 61.8% level. Alternatively, a reversal above the 38.2% Fibat 172.18 opens the door for a test of the 23.6% expansionat 173.24.

Prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines, waiting for a more compelling opportunity to emerge.

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GBP/JPY Technical Analysis: Pound Drops for Third Day

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.

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