GBP/JPY Technical Analysis: Pound Moves to 7-Year High
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- GBP/JPY Technical Strategy: Flat
- Support: 189.19, 187.79, 185.01
- Resistance: 191.19, 192.81, 194.43
The British Pound took out December’s swing top to advance to the highest level in seven years against the Japanese Yen. Near-term resistance is at 191.19, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 192.81. Alternatively, a turn below the 189.19-70 area (December 5 high, 23.6% Fib) opens the door for a challenge of the 187.79-95 zone (December 29 high, 14.6% expansion).
While entering long seems tempting, negative RSI divergence warns of ebbing upside momentum and hints follow-through may not materialize. With that in mind, we will continue to stand aside for now and wait for a more compelling setup to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com