GBP/JPY Technical Analysis – Support Sub-173.00 Holds Up
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- GBP/JPY Technical Strategy: Flat
- Support: 172.79, 172.34, 171.80
- Resistance: 173.41, 174.08, 174.60
The British Pound pulled back against the Japanese Yen as expected after showing a Shooting Star candlestick below the 174.00 figure. Near-term support is in the 172.79-173.00 area, marked by a formerly broken triple top, a rising channel floor and the 23.6% Fibonacci retracement. Breaking below this barrier on a daily closing basis exposes the 38.2% level 172.34. Alternatively, a turn back above the 14.6% Fib at 173.42 clear the way for a challenge of the June 20 high at 174.08.
The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside, waiting for a more attractive opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com