GBP/JPY Technical Analysis: Rally Stalls Below 175.00 Mark
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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 paused to digest gains below the 175.00 figure after rising to the highest level in three weeks against the Japanese Yen. A daily close above the 50% Fibonacci retracement at 174.34 exposes the 61.8% level at 175.84. Alternatively, a reversal below the 38.2% Fib at 172.85 opens the door for a test of the 170.69-99 area marked by the August 8 low and the 23.6% retracement.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com