GBP/JPY Technical Analysis: Trend Line Resistance Broken
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- GBP/JPY Technical Strategy: Flat
- Support: 193.21, 192.37, 191.00
- Resistance: 194.58, 195.82, 196.79
The British Pound launched sharply higher against the Japanese Yen, clearing resistance capping gains since mid-June. A daily close above the 38.2% Fibonacci expansion at 194.58 exposes the 195.69-82 area (50% level, June 18 high). Alternatively, a turn below the 23.6% Fib at 193.21 clears the way for a test of the 14.6% expansion at 192.37.
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