Forex: GBP/JPY Technical Analysis – Support Sub-172.00 at Risk
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- GBP/JPY Technical Strategy: Flat
- Support: 171.87 (38.2% Fib exp.), 170.70 (23.6% Fib exp.)
- Resistance: 172.81 (50% Fib exp.), 173.76 (61.8% Fib exp.)
The British Pound is beginning to edge lower against the Japanese Yen as expected after prices put in a Shooting Star candlestick below resistance at 172.81, the 50% Fibonacci expansion. A daily close below support at 171.87 – the 38.2% Fib – aims for the 23.6% expansion at 170.70.Alternatively, a reversal above resistance targets the 61.8% level at 173.76.
Entering short seems premature at this point absent confirmation of a breakdown on a daily closing basis. On the other hand, trying to enter long would presume support will necessarily hold, an assumption that is thus far baseless. As such, we will remain on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com