GBP/JPY Technical Analysis: Aiming at Monthly Bottom
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- GBP/JPY Technical Strategy: Flat
- Support: 177.10, 176.17, 175.02
- Resistance: 178.03, 180.15, 181.08
The British Pound looks vulnerable to deeper losses against the Japanese Yen after prices cleared range support. A daily close below the 50% Fibonacci expansion at 177.10 exposes the 176.17-31 area (triple bottom, 61.8% level). Alternatively, a turn above the 38.2% Fib at 178.03 opens the door for a test of the 38.2% Fib retracement at 180.15.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.