GBP/JPY Technical Analysis: Rally Stalls Near 6-Year High
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- GBP/JPY Technical Strategy: Flat
- Support: 186.60, 184.31, 183.03
- Resistance: 188.23, 190.88, 193.02
The British Pound paused to consolidate after rising to the highest level in six years against the Japanese Yen. Near-term resistance is at 188.23, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 190.88. Alternatively, a reversal below the 14.6% Fib at 186.60 clears the way for a challenge of the November 6 high at 184.31.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
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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.