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- GBP/JPY Technical Strategy: Flat
- Support: 170.75 (23.6% Fib exp.), 170.00 (Triangle bottom)
- Resistance:171.53 (38.2% Fib exp.), 172.17 (50% Fib exp.)
The British Pound launched a sharp recovery against the Japanese Yen after putting in a bullish Piercing Line candlestick pattern. Buyers are testing above the 38.2% Fibonacci expansion at 171.53, with a break above that exposing the 50% level at 172.17. Near-term support is at 170.75, the 23.6% Fib. A move below that targets the bottom of an emerging Triangle chart pattern at 170.00.
Prices are trading too close to relevant resistance to make a long trade attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com