GBP/JPY Technical Analysis: Resistance Just Below 176.00
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- GBP/JPY Technical Strategy: Flat
- Support: 174.34, 172.85, 170.69
- Resistance: 175.84, 177.70, 180.69
The British Pound resumed its push higher against the Japanese Yen, with prices aiming to build above the 175.00 figure. Near-term resistance is at 175.84, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 177.70. Alternatively, a turn below the 50% Fib at 174.34 clears the way for a challenge of the 38.2% retracement at 175.85.
While entering long seems compelling from a purely technical perspective, we will tactically opt to pass on the trade. Upward continuation is questionable as the threat of on-coming risk aversion – a potentially significant negative catalyst for GBPJPY – continues to loom large following a hawkish FOMC policy announcement and firm US GDP report. 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