GBP/JPY Technical Analysis: Pound Sets New Six-Year High
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- GBP/JPY Technical Strategy: Flat
- Support: 188.23, 186.60, 184.31
- Resistance: 190.88, 193.02, 195.16
The British Pound resumed its push higher against the Japanese Yen, with prices advancing to set a new six-year high. A daily close above the 38.2% Fibonacci expansionat 190.88 exposes the 50% level at 193.02. Alternatively, a turn below the 23.6% Fib at 188.23 opens the door for a test of the 14.6% expansion at 186.60.
While entering long is a tempting proposition, we will tactically opt to stand aside for now. We are leery of entering short Yen, worrying that year-end capital flows may fuel a recovery in the currency. With that in mind, we will continue to stand aside 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.