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Forex: GBP/JPY Technical Analysis – Trend Line Support in Focus

By , Currency Strategist
11 March 2014 22:03 GMT

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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 170.87 (trend line), 169.86 (38.2% Fib ret.)
  • Resistance: 171.27 (23.6% Fib ret.), 173.56 (Mar 7 high)

The British Pound is losing ground against the the Japanese Yen as expected after producing a Shooting Star candlestick. A break below support at 171.27, the 23.6% Fibonacci retracement, has exposing falling trend line resistance-turned-support at 170.87. A push below this barrier targets the 38.2% level at 169.86. Alternatively, a move back above 171.27 aims for the March 7 swing high at 173.56.

Prices are too close to relevant support to justify a short position from a risk/reward perspective. A viable reversal signal arguing in favor of a long trade is absent for the time being however. On balance, we will remain on the sidelines until a more actionable setup presents itself.

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dailyclassics_gbp-jpy_body_Picture_11.png, Forex: GBP/JPY Technical Analysis – Trend Line Support in Focus

Daily Chart - Created Using FXCM Marketscope 2.0

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

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11 March 2014 22:03 GMT