GBP/JPY Technical Analysis: Resistance Sub-179 in Focus
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- GBP/JPY Technical Strategy: Flat
- Support: 177.26, 175.77, 174.87
- Resistance: 178.74, 179.94, 181.14
The British Pound renewed its push higher against the Japanese Yen, moving to challenge monthly highs near the 179.00 figure. A daily close above the 38.2% Fibonacci retracement at 178.74 exposes the 50% level at 179.94. Alternatively, a reversal below the 23.6% Fib at 177.26 opens the door for a test of the 175.77-176.35 area (triple bottom, 14.6% retracement).
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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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.