GBP/JPY Technical Analysis: December Top Under Pressure
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- GBP/JPY Technical Strategy: Flat
- Support: 188.27, 186.87, 185.74
- Resistance: 190.53, 192.80, 194.20
The British Pound continues to push higher against the Japanese Yen, with prices moving to challenge December’s swing top. Near-term resistance is in the 189.70-190.53 area (December 5 high, 100% Fibonacci expansion), with a break above that on a daily closing basis exposing the 123.6% level at 192.80. Alternatively, a turn below the 76.4% Fib at 188.27 opens the door for a challenge of the 61.8% expansion at 186.87.
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.