GBP/JPY Technical Analysis: Pound Drops Most in 2 Weeks
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- GBP/JPY Technical Strategy: Flat
- Support: 180.18, 178.39, 177.28
- Resistance: 181.64, 183.09, 184.88
The British Pound paused its advance against the Japanese Yen, issuing the largest decline in two weeks. Near-term resistance is at 180.64, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 183.09. Alternatively, a push below the 38.2% Fib at 180.18 opens the door for a test of the 23.6% retracement at 178.39.
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.