Forex: GBP/JPY Technical Analysis – Resistance Seen Above 166.00

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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 163.87 (Feb 4 low)
  • Resistance: 166.17 (23.6% Fib ret.), 167.24-60 (channel bottom, 38.2% Fib ret.)

The British Pound managed a shallow recovery against the Japanese Yen. A daily close above resistance at 166.17, the 23.6% Fibonacci retracement, exposes the 167.24.60 region (marked by the underside of a previously broken falling channel and the 38.2% Fib). Near-term support is at 163.87, the February 4 low.

Entering long here seems unattractive from a risk/reward perspective with prices in close proximity to relevant resistance. On the other hand, attempting to pick a top and entering short seems premature absent a defined reversal signal. As such, we will continue to stand aside for now.

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dailyclassics_gbp-jpy_body_Picture_12.png, Forex: GBP/JPY Technical Analysis – Resistance Seen Above 166.00

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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.
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