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- GBP/JPY Technical Strategy: Flat
- Support: 171.87 (38.2% Fib exp.), 170.70 (23.6% Fib exp.)
- Resistance: 172.81 (50% Fib exp.), 173.76 (61.8% Fib exp.)
The British Pound continued to push higher against the Japanese Yen following yesterday’s resistance break. Buyers are testing resistance at 172.81, the 50% Fibonacci expansion, with a break above that targeting the 61.8% level at 173.76. Alternatively, a reversal back below the 38.2% Fib at 171.87 exposes the 23.6% expansion at 170.70.
At this point, prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, a short trade is premature absent the presence of an actionable downward 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