GBP/JPY Technical Analysis: Support Now Below 179.00
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- GBP/JPY Technical Strategy: Flat
- Support: 178.85, 176.29, 173.12
- Resistance: 181.41, 184.58, 186.53
The British Pound slumped to a two-month low against the Japanese Yen, with prices now eyeing support below the 179.00 figure. A daily close below the 50%Fibonacci retracement at 178.85 exposes the 61.8% level at 176.29. Alternatively a reversal above the 38.2% retracement at 181.41clears the way for a challenge of the 23.6% retracement at 184.58.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.