GBP/JPY | Still Waiting for Direction Cues | 04.08.2015
Talking Points :
- GBP/JPY Technical Analysis: Flat
- Support: 193.21, 192.37, 191.00
- Resistance: 193.53, 194.58, 195.82
The British Pound is testing resistance capping gains since mid-June having rallied to the highest level in a month against the Japanese Yen. A daily close above trend line resistance at 193.53 exposes the 38.2% Fibonacci expansion at 194.58. Alternatively, a reversal below the 23.6% Fib at 193.21 clears the way for a test of the 14.6% expansion at 192.37.
The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.