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GBP/JPY Technical Analysis: Pound Soars to 6-Week High

GBP/JPY Technical Analysis: Pound Soars to 6-Week High

2014-11-03 02:35:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 177.70, 175.84, 174.34
  • Resistance: 180.69, 182.55, 183.69

The British Pound soared to the highest level in six weeks against the Japanese Yen after an unexpected expansion of BOJ stimulus. A daily close above the September 19 highat 180.69 exposes the 114.6% Fibonacci extension at 182.55. Alternatively, a reversal below the 76.4% Fib retracement at 177.70 opens the door for a test of the 61.8% level at 175.84.

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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GBP/JPY Technical Analysis: Pound Soars to 6-Week High

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.

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