GBP/JPY Technical Analysis: Turn Downward May Be Ahead
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- GBP/JPY Technical Strategy: Flat
- Support: 183.47, 181.84, 179.19
- Resistance: 186.60, 188.23, 190.88
The British Pound continues to tread water against the Japanese Yen having found resistance below the 187.00 figure. Near-term resistance is in the 186.11-60 area, marked by the November 20 high and the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 188.23. Alternatively, a reversal below the 183.47-184.31 zone (November 6 high, 14.6% Fib retracement) clears the way for a challenge of the 23.6% retracement at 181.84.
While negative RSI divergence points to ebbing upside momentum and warns a turn lower may be ahead, the absence of a defined bearish reversal signal suggests entering short is premature. We will remain on the sidelines 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.