GBPJPY Technical Analysis | Eying Support Above 188.00 | 24.08.2015
- GBPJPY Technical Analysis : Flat
- Support : 188.51, 186.93, 184.37
- Resistance : 189.79, 191.07, 191.97
The British Pound is pushing aggressively lower for second straight day against the Japanese Yen, sinking to touch the lowest level in six weeks. From here, a break below the 61.8% Fibonacci expansion at 188.51 on a daily closing basis exposes the 76.4% level at 186.93.
While aggressive downside momentum looks likely to keep the pair firmly under pressure, thin liquidity conditions elevate the risk of swift intraday reversals. With that in mind, a turn back above the 50% Fib at 189.79 opens the door for a test of the next upside barrier at 191.07, the 38.2% expansion.
An actionable trading opportunity is absent at this point. The absence of confirmation on a daily closing basis means a breach of the 50% Fib can’t be taken as a given. In fact, even if the break were confirmed the pair is too close to the 61.8% barrier to make a short attractive on a risk/reward basis. Alternatively, no viable bullish reversal signal is present to justify taking up the long side. With that in mind, we will continue to monitor developments from the sidelines.