GBP/JPY Technical Analysis: Selloff Stalls 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 paused to consolidate losses above the 179.00 figure against the Japanese Yen after sinking to a two-month low. Near-term support is at 178.85, the 50%Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 176.29. Alternatively a turn above the 38.2% retracement at 181.41opens the door for a test of the 23.6% retracement at 184.58.
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.