To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 182.08, 180.80, 178.73
- Resistance: 183.23, 184.27, 186.34
The British Pound snapped three days of losses against the Japanese Yen, moving to retest the boundaries of the down trend since early December. Near-term trend line resistance is at 183.23, with a break above that on a daily closing basis exposing the 61.8% Fibonacci retracement at 184.27. Alternatively, a reversal below the 14.6% Fib expansion at 182.08 clears the way for a challenge of the 23.6% level at 180.80.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com