GBP/JPY Technical Analysis: Readying to Turn Lower?
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- GBP/JPY Technical Strategy: Flat
- Support: 186.87, 185.74, 184.60
- Resistance: 188.27, 190.53, 192.80
The British Pound paused to digest its advance against the Japanese Yen, with a Shooting Star candlestick hinting a pullback may be ahead. Near-term resistance is at 188.27, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 100% level at 190.53. Alternatively, a reversal below the 61.8% Fib at 186.87 clears the way for a challenge of the 50% expansion at 158.74.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.