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

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 191.45, 190.98, 188.96
• Resistance: 193.38, 195.48, 197.50

The British Pound continued to push higher against the Japanese Yen, moving to the highest level in nearly seven years. A daily close above channel top resistance at 193.38 exposes the 38.2% Fibonacci expansion at 195.48. Alternatively, a reversal below the 14.6% Fib at 191.45 clears the way for a test of channel floor support at 190.98.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com