DailyFX.com –
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
– GBP/JPY Technical Strategy: Flat
– Support: 184.77, 181.41, 178.85
– Resistance: 186.72, 189.89, 192.45
The British Pound has been gaining ground against the Japanese Yen for the third day in a row, aiming to break December’s swing high. A daily close above the 23.6% Fibonacci expansion at 186.72 could lead to further gains towards the 38.2% level at 189.89. Conversely, a reversal below the 14.6% expansion at 184.77 may open the door for a test of the 38.2% Fib retracement at 181.41.
Considering risk/reward factors, it may not be wise to enter long positions with prices nearing resistance levels. However, the lack of a clear bearish reversal signal suggests that it might be premature to take a short position. As a result, we are currently staying on the sidelines, waiting for a more favorable opportunity to present itself.
For those interested, technical levels can be added directly to your charts using our Support/Resistance Wizard app.
GBP/JPY Technical Analysis: Trying to Expose December Top
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.