GBP/JPY Technical Analysis: Attempting to Expose 180.00
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- GBP/JPY Technical Strategy: Flat
- Support: 178.11, 176.31, 175.05
- Resistance: 178.71, 180.11, 181.23
The British Pound advanced against the Japanese Yen as expected after prices produced a bullish Morning Star candlestick pattern. Near-term resistance is at 178.71, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 180.11. Alternatively, a move below resistance-turned-support at 178.11 clears the way for a challenge of a triple bottom at 176.31.
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.