GBP/JPY Technical Analysis: Quiet Consolidation Continues
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- 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.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com