Forex: GBP/JPY Technical Analysis – Flag Pattern Taking Shape?
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- GBP/JPY Technical Strategy: Flat
- Support: 167.48 (Flag bottom), 164.23 (38.2% Fib ret.)
- Resistance: 168.28 (23.6% Fib ret.), 170.78 (14.6% Fib ret.)
The British Pound continues to drift lower against the Yen, with prices tracing out what could ultimately prove to be a Flag chart pattern. If confirmed on a daily close above the setup’s upper boundary (currently at 173.11), the setup would argue for bullish continuation.
Entering long seems premature at the moment absent a clear-cut reversal signal however, particularly given last week’s push through near-term support at 168.28 (23.6% Fibonacci retracement). We will stand aside for now as sellers test the Flag’s lower boundary, waiting for a more concrete directional cues to emerge before considering a position.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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