GBP/JPY Technical Analysis: Pound Attempts Bounce vs. Yen

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• GBP/JPY Technical Strategy: Flat

• Support: 181.41, 178.85, 176.29

• Resistance: 184.77, 186.72, 189.89

The British Pound found support above the 181.0 figure and recoiled upward in attempt to resume its uptrend against the Japanese Yen. A daily close above the 14.6% Fibonacci expansion at 184.77 exposes the 23.6% level at 186.72. Alternatively, a reversal below the 38.2% Fib retracement at 181.41 opens the door for a test of the 50% threshold at 178.85.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/JPY Technical Analysis: Pound Attempts Bounce vs. Yen

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.