GBP/JPY Technical Analysis: Attempting to Force Reversal
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- GBP/JPY Technical Strategy: Flat
- Support: 191.41, 189.45, 187.91
- Resistance: 192.27, 194.58, 196.45
The British Pound managed to avert bearish reversal against the Japanese Yen but negative RSI divergence continues to warn of weakness ahead. A daily close below trend line support is at 191.41 exposes the 14.6% Fibonacci retracement at 189.45. Alternatively, a move above the 23.6% Fib expansion at 192.27 clears the way for a test of the 38.2% level at 194.58.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.