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Forex: GBP/JPY Technical Analysis – Readying to Turn Lower?

By , Currency Strategist
16 February 2014 23:40 GMT

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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 169.35 (50% Fib ret.), 168.05 (38.2% Fib ret.)
  • Resistance: 170.64 (61.8% Fib ret.), 172.24 (76.4% Fib ret.)

The British Pound may be readying to turn lower against the Japanese Yen after prices put in a Hanging Man indecision candle below resistance at 170.64, the 61.8% Fibonacci retracement. A break below support at 169.35, the 50% level, targets the 38.2% Fib at 168.05. Alternatively, a reversal above resistance on a daily closing basis eyes the 76.4% retracement at 172.24.

Entering short presently looks premature absent confirmation on a daily close below support. Furthermore, prices are too close to the downside barrier to justify a trade from a risk/reward perspective. We will remain on the sidelines for now, waiting for a defined signal to take a directional bet.

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dailyclassics_gbp-jpy_body_Picture_7.png, Forex: GBP/JPY Technical Analysis – Readying to Turn Lower?

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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16 February 2014 23:40 GMT