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- GBP/JPY Technical Strategy: Flat
- Support: 168.81 (Mar 3 low)
- Resistance: 170.70-171.00 (23.6% Fib exp., trend line), 171.87 (38.2% Fib exp.)
The British Pound swiftly snapped back after yesterday’s sharp losses against the Japanese Yen. Prices are approaching resistance in the 170.70-171.00 area, marked by a falling trend line set from January 2 and the 23.6% Fibonacci expansion. A break higher initially targets the 38.2% Fib at 171.87. Near-term support is at 168.81, the March 3 low.
Prices are too close to relevant resistance to justify a long position on risk/reward grounds. On the other hand, a short trade assuming resistance will hold is premature absent a defined reversal signal. We will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com