GBP/JPY Technical Analysis: Key Trend Line in Focus
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- GBP/JPY Technical Strategy: Flat
- Support: 181.79, 180.84, 178.76
- Resistance: 184.27, 186.34, 187.79
The British Pound has stalled against the Japanese Yen following a retest the boundaries of the down trend since early December. Near-term resistance is in the 183.50-184.27 area (trend line, 61.8% Fibonacci retracement), with a break above that on a daily closing basis exposing the 76.4% at 186.34. Alternatively, a reversal below resistance-turned-support at 181.79 clears the way for a challenge of the 23.6% Fib expansion at 180.84.
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.