GBP/JPY Technical Analysis: Pound Dips to 7-Month Low
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- GBP/JPY Technical Strategy: Flat
- Support: 169.33, 167.72, 166.00
- Resistance: 170.50, 171.36, 172.21
The British Pound continues to push lower against the Japanese Yen, with prices dipping to touch a seven-month low. A daily close below the 169.33-44 area marked by the September 8 low and the 76.4% Fibonacci expansion exposes the 100% level at 167.72. Alternatively, a turn back above the 170.41-46 zone (August 15 low, 61.8% Fib) opens the door for a test of the 50% expansion at 171.36.
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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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com