GBP/JPY Technical Analysis: Poised to Challenge 185.00
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- GBP/JPY Technical Strategy: Flat
- Support: 183.70, 182.92, 181.79
- Resistance: 184.97, 186.00, 187.03
The British Pound is gearing up for a test of the 185.00 figure against the Japanese Yen after securing the third consecutive day on the upside. Near-term resistance is at 184.97, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 186.00. Alternatively, a reversal below the 23.6% Fib at 183.70 clears the way for a challenge of the 14.6% expansion at 182.92.
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