GBP/JPY Technical Analysis: Key Support Above 181.00 Mark
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- GBP/JPY Technical Strategy: Flat
- Support: 181.41, 178.85, 176.29
- Resistance: 184.58, 186.53, 187.53
The British Pound is testing December’s swing bottom against the Japanese Yen having entered 2015 facing heavy selling pressure. Near-term support is at 181.41-60 area, marked by the December 16 low and the 38.2%Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 178.85. Alternatively a reversal above the 23.6% Fib at 184.58clears the way for a challenge of the 14.6% retracement at 186.53.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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.