GBP/JPY Technical Analysis: Pound in Consolidation Mode
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 192.99, 191.45, 188.96
- Resistance: 195.48, 197.50, 199.51
The British Pound paused to digest gains after failing to overcome a chart barrier above the 195.00 figure against the Japanese Yen. Near-term resistance is at 195.48, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 197.50. Alternatively, a turn below the 23.6% Fib at 192.99 opens the door for a challenge of the 14.6% expansion at 191.45.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.