GBP/JPY Technical Analysis: Pound Drops Most in a Month
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- GBP/JPY Technical Strategy: Flat
- Support: 175.01, 174.00, 172.75
- Resistance: 176.31, 177.26, 178.03
The British Pound accelerated downward against the Japanese Yen, issuing the largest daily decline in a month. Near-term support is at 175.01, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 174.00. Alternatively, a turn above the 176.01-31 area (38.2% Fib, triple bottom support-turned-resistance) clears the way for a challenge of the 23.6% expansion at 177.26.
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.