GBP/JPY Technical Analysis: Struggling to Build Upward

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 177.53, 175.67, 174.26
• Resistance: 178.61, 180.36, 181.78

The British Pound is attempting to build upward against the Japanese Yen as expected after producing a Bullish Engulfing candlestick pattern. Near-term resistance is at 178.61, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 180.36. Alternatively, a turn below the 14.6% Fib at 177.53opens the door for a test of the 38.2% Fib expansion at 175.67.

Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com