GBP/JPY Technical Analysis: Digesting Losses Near 176.00
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 175.77, 175.01, 174.00
- Resistance: 177.26, 178.03, 179.28
The British Pound is digesting losses against the Japanese Yen after producing the largest daily drop in a month. A daily close below the 175.77-176.01 area (triple bottom, 38.2% Fibonacci expansion) exposes the 50% level at 175.01. Alternatively, a reversal above the 23.6% Fib at 177.26 opens the door for a test of the 14.6% expansion at 178.03.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com