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GBP/JPY Technical Analysis: Pound Moves to 7-Year High

GBP/JPY Technical Analysis: Pound Moves to 7-Year High

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • 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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GBP/JPY Technical Analysis: Pound Moves to 7-Year High

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.

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