GBP/JPY Technical Analysis: Key Trend Line Back in Focus
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- 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.
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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.