The British Pound rose for a fourth consecutive day against the Japanese
Yen, with prices now eyeing resistance above the 178.00 figure.
Near-term resistance is at 178.74, the 38.2% Fibonacci retracement, with
a break above that on a daily closing basis exposing the 50% level at
179.94. Alternatively, a turn below the 23.6% Fib at 177.26 clears the
way for a challenge of the 175.77-176.35 area (triple bottom, 14.6%
retracement).
| Resistance | Support |
|---|---|
| 178.74 | 177.26 |
| 179.94 | 175.77 |
| 181.14 | 174.87 |
We see the overall GBPJPY trend as favoring the downside after last week’s break of the 12-month uptrend set from February 2014 lows. With that in mind, we will opt against entering long and treat on-coming as corrective, looking for the move to offer a selling opportunity once upside momentum is exhausted.
