GBP/JPY Technical Analysis: Resistance Above 174.00 Tested
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- GBP/JPY Technical Strategy: Flat
- Support: 172.85, 170.69, 169.33
- Resistance: 174.34, 175.84, 177.70
The British Pound continues to push higher against the Japanese Yen, with prices moving to challenge resistance above the 174.00 figure. Near-term resistance is at 174.34, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 175.84. Alternatively, a turn below the 38.2% Fib at 172.85 clears the way for a challenge of the 170.69-99 area marked by the August 8 low and the 23.6% retracement.
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 that 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.