GBP/JPY Technical Analysis: Pound Soars to Six-Year High
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- GBP/JPY Technical Strategy: Flat
- Support: 186.60, 184.31, 182.89
- Resistance: 188.23, 190.88, 193.02
The British vaulted higher out of consolidation, hitting the highest level in six years against the Japanese Yen. A daily close above the 23.6% Fibonacci expansion at 188.23 exposes the 38.2% level at 190.88. Alternatively, a turn below the 14.6% Fib at 186.60 opens the door for a test of the November 6 high at 184.31.
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
--- 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.