Forex: GBP/JPY Technical Analysis – Sellers Overcome 170.00 Figure
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Talking Points:
GBP/JPY Technical Strategy: Flat
Support: 168.71 (50% Fib ret.), 167.85 (trend line)
Resistance: 169.86 (38.2% Fib ret.), 171.27 (23.6% Fib ret.)
The British Pound is falling as expected against Japanese Yen, with prices dropping below the 170.00 figure to challenge the 50% Fibonacci retracement at 168.71. A break below this barrier aims for a rising trend line set from August 2013, now at 167.85, followed by the 61.8% level at 167.57. Alternatively, a reversal back above the 38.2% Fib at 169.86 exposes the 23.6% retracement at 171.27.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, a viable reversal signal arguing in favor of a long trade is absent for the time being.We will remain on the sidelines until a more actionable setup presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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