GBP/JPY Technical Analysis: Pressuring 193.00 Threshold
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- GBP/JPY Technical Strategy: Flat
- Support: 191.45, 188.96, 187.50
- Resistance: 193.61, 195.48, 197.50
The British Pound advanced for a fourth consecutive day against the Japanese Yen but negative RSI divergence continues to warn of ebbing upside momentum. Near-term channel top resistance is at 193.61, with a break above that on a daily closing basis exposing the 38.2% Fibonacci expansion at 195.48. Alternatively, a turn below 191.45 (14.6% Fib, channel floor) opens the door for a challenge of the June 10 low at 188.96.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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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.