GBP/JPY Technical Analysis: Pound Rises to 8-Week High

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 182.28, 181.35, 180.53
• Resistance: 184.03, 186.20, 189.70

The British Pound advanced to the highest level in eight weeks against the Japanese Yen, with buyers attempting to clear a path above 184.00. A daily close above the 61.8% Fibonacci retracementat 184.03 exposes the 76.4% level at 186.20. Alternatively, a reversal below the 50% Fib at 182.28 opens the door for a test of trend line resistance-turned-support at 181.35.

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