GBP/JPY Technical Analysis – Support at 173.00 in Focus
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- GBP/JPY Technical Strategy: Flat
- Support: 173.00, 172.34, 171.80
- Resistance: 173.41, 174.08, 174.47
The British Pound pulled back against the Japanese Yen as expected after prices put in a Shooting Star candlestick. Sellers are testing support at 173.00, the 23.6% Fibonacci retracement, with a break below that exposing the 172.34-40 area marked by the 38.2% level and the bottom of a rising channel set from late May. Alternatively, a move back above the 14.6% Fib at 173.42 clears the way for another challenge of the June 20 high at 174.08.
A Shooting Star candlestick is indicative of indecision and further confirmation is needed to make for an actionable short trade signal. With that in mind, we will stand aside for now until an actionable opportunity emerges.
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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.