GBP/JPY Technical Analysis: 11-Week Trend Line Under Fire
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- GBP/JPY Technical Strategy: Flat
- Support: 182.08, 180.80, 178.73
- Resistance: 183.21, 184.27, 186.34
The British Pound are testing pivotal resistance against the Japanese Yen as prices challenge the bounds of the down trend played out since early December. A daily close above trend line resistance at 183.21 exposes the 61.8% Fibonacci retracement at 184.27. Alternatively, a turn below the 14.6% Fib expansion at 182.08 opens the door for a test of the 23.6% level at 180.80.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.