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.
We will keep you updated