GBP/JPY Technical Analysis – Pound Drops to 2-Week Low
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- GBP/JPY Technical Strategy: Flat
- Support: 172.34, 171.80, 171.27
- Resistance: 172.79, 173.00, 173.41
The British Pound declined against the Japanese Yen as expected after prices produced a Shooting Star candlestick below the 174.00 figure. Sellers now aim to challenge support at 172.34, the 38.2% Fibonacci retracement. A break below that on a daily closing basis exposes the 50% level at 171.80. Near-term resistance is in the 172.79-173.00 area, marked by a formerly broken triple top and the 23.6% Fib. A reversal back above that targets the 14.6% retracement at 173.41.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.