Thursday, October 30, 2014

GBP/JPY Technical Analysis: Resistance Just Below 176.00




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Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 174.34, 172.85, 170.69


  • Resistance: 175.84, 177.70, 180.69


The British Pound resumed its push higher against the Japanese Yen, with prices aiming to build above the 175.00 figure. Near-term resistance is at 175.84, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 76.4% level at 177.70. Alternatively, a turn below the 50% Fib at 174.34 clears the way for a challenge of the 38.2% retracement at 175.85.



While entering long seems compelling from a purely technical perspective, we will tactically opt to pass on the trade. Upward continuation is questionable as the threat of on-coming risk aversion – a potentially significant negative catalyst for GBPJPY – continues to loom large following a hawkish FOMC policy announcement and firm US GDP report. We will remain flat for now.



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GBP/JPY Technical Analysis: Resistance Just Below 176.00


Daily Chart – Created Using FXCM Marketscope 2.0



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





GBP/JPY Technical Analysis: Resistance Just Below 176.00

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