GBP/JPY Technical Analysis: Rally Continues for Third Day
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- GBP/JPY Technical Strategy: Flat
- Support: 181.14, 179.94, 178.74
- Resistance: 182.62, 185.01, 186.38
The British Pound pushed higher for a third consecutive day against the Japanese Yen, with prices on pace to clear a path toward the February swing top. Near-term resistance is at 182.62, the 76.4% Fibonacci retracement, with a break above that on a daily closing basis exposing the February 26 high at 185.01. Alternatively, a turn below the 61.8% Fib at 181.14 clears the way for a challenge of the 50% retracement at 179.94.
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 an 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.