Sunday, March 1, 2015

GBP/JPY Technical Analysis: Digesting Below 185.00 Figure




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Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 183.70, 182.92, 181.79


  • Resistance: 184.97, 186.00, 187.03


The British Pound remains in consolidation mode below the 185.00 figure against the Japanese Yen as prices await the next directional trigger. Near-term resistance is at 184.97, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 186.00. Alternatively, a reversal below the 23.6% Fib at 183.70 clears the way for a challenge of the 14.6% expansion at 182.92.



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.



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GBP/JPY Technical Analysis: Digesting Below 185.00 Figure


Daily Chart – Created Using FXCM Marketscope



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





GBP/JPY Technical Analysis: Digesting Below 185.00 Figure

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