GBP/JPY Technical Analysis: Selloff Stalls at Channel Support
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- GBP/JPY Technical Strategy: Flat
- Support: 182.70, 181.66, 179.58
- Resistance: 185.01, 187.79, 189.70
The British Pound stalled to consolidate losses after dropping to the lowest level in two weeks against the Japanese Yen. Near-term rising channel support is at 182.70, with a break below that on a daily closing basis exposing the 23.6% Fibonacci expansion at 181.66. Alternatively, a reversal above the February 26 high at 185.01 clears the way for a challenge of the December 29 top at 187.79.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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