GBP/JPY Technical Analysis: Waiting to Re-Enter Short
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- GBP/JPY Technical Strategy: Short at 190.74
- Support: 191.45, 190.76, 188.96
- Resistance: 192.99, 195.48, 197.50
The British Pound narrowly set a monthly high against the Japanese Yen, with prices seemingly aiming to make a move toward the 193.00 figure. Near-term resistance is at 192.99 (channel top, 23.6% Fibonacci expansion), with a break above that on a daily closing basis exposing the 38.2% level at 195.48. Alternatively, a turn below the 14.6% Fib at 191.45 opens the door for a challenge of channel floor support at 190.76.
Our GBPJPY short position at 190.74 was stopped out on a daily close above 191.94. Negative RSI divergence continues to warn of ebbing upside momentum however, hinting a top may yet be taking shape. We will stand aside for now but continue monitoring positioning for a new selling opportunity.
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--- 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.