GBP/JPY Technical Analysis: Six-Week Resistance Under Fire
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- GBP/JPY Technical Strategy: Flat
- Support: 193.21, 192.37, 191.00
- Resistance: 193.67, 194.58, 195.82
The British Pound is testing resistance capping gains since mid-June having rallied for a third consecutive day against the Japanese Yen. A daily close above trend line resistance at 193.67 exposes the 38.2% Fibonacci expansion at 194.58. Alternatively, a reversal below the 23.6% Fib at 193.21 clears the way for a test of the 14.6% expansion at 192.37.
The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.