GBP/JPY Technical Analysis: Pound Sinks to 11-Week Low
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- GBP/JPY Technical Strategy: Flat
- Support: 175.65, 174.41, 172.87
- Resistance: 176.90, 178.44, 179.38
The British Pound resumed its descent against the Japanese Yen, with sellers now eyeing support below the 176.00 figure. Near-term support is at 175.65, the 50%Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 174.41. Alternatively a turn above the 38.2% expansion at 176.90opens the door for a test of the 23.6% Fib retracement at 178.44.
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.