GBP/JPY Technical Analysis: Pausing to Digest Sub-184.00
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- GBP/JPY Technical Strategy: Flat
- Support: 182.28, 180.53, 178.37
- Resistance: 184.03, 186.20, 189.70
The British Pound paused to consolidate gains after rising to the highest level in nearly two months against the Japanese Yen. Near-term resistance is at 184.03, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 186.20. Alternatively, a turn below the 50% Fib at 182.28 clears the way for a challenge of the 38.2% retracement at 180.53.
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