GBP/JPY Technical Analysis: Trying to Clear Path Sub-192.00
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- GBP/JPY Technical Strategy: Flat
- Support: 193.07, 191.32, 190.11
- Resistance: 194.94, 195.89, 197.10
The British Pound continues to oscillate in a choppy range below the 195.00 figure against the Japanese Yen. Near-term trend line support is at 193.07, with a break below that on a daily closing basis exposing the 38.2% Fibonacci retracement at 191.32. Alternatively, a move above trend line resistance at 194.94clears the way for a test ofthe 195.82-89 area (38.2% Fib expansion, June 18 high).
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.