Forex: GBP/JPY Technical Analysis – Ready to Reverse Higher?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 168.10 (trend line)
- Resistance: 170.21 (23.6% Fib exp.), 171.63 (38.2% Fib exp.)
The British Pound fell as expected against the Japanese Yen but prices may be readying to launch a recovery from support at a rising trend line set from April 2013. The pair is on pace to complete a bullish Piercing Line candlestick pattern, a setup hinting at forthcoming reversal. Near-term resistance is at 170.21, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 171.63. Trend line support is now at 168.10.
Risk/reward considerations argue against entering long at this point with prices trading too close to relevant resistance. We will continue to stand aside for now.
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.