GBP/JPY Technical Analysis: Rally Stalls Ahead of 190.00
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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 paused to consolidate gains after prices advanced to set a new six-year high against the Japanese Yen. Near-term resistance is at 190.88, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 193.02. Alternatively, a reversal below the 23.6% Fib at 188.23 clears the way for a challenge of the 14.6% expansion at 186.60.
Entering long looks compelling from a purely technical perspective but we will tactically opt to pass on the trade. We are concerned that year-end capital flows may fuel a Yen recovery. With that in mind, we will remain on the sidelines for the time being.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com