GBP/JPY Technical Analysis: Triple Bottom Support Holds

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 175.77, 175.01, 174.00
• Resistance: 177.26, 178.03, 179.28

The British Pound spiked to the lowest level in five months against the Japanese Yen but sellers failed to secure lasting momentum. Near-term support is in the 175.77-176.01 area (triple bottom, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 175.01. Alternatively, a turn above the 23.6% Fib at 177.26 clears the way for a challenge of the 14.6% expansion at 178.03.

Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com