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- 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.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com