GBP/JPY Technical Analysis: Trying to Extend Above 173.00
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- GBP/JPY Technical Strategy: Flat
- Support: 170.69, 169.33, 167.99
- Resistance: 172.85, 174.34, 175.84
The British Pound pushed higher for a third consecutive day against the Japanese Yen, with prices working to clear a path above the 173.00 figure. Near-term resistance is at 172.85, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 173.83-174.34 area (July 30 close, 50% level). Alternatively, a reversal below the 170.69-99 zone (August 8 low, 23.6% Fib) clears the way for a challenge of the September 8 low at 169.33.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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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.