GBP/JPY Technical Analysis: Sinking to Channel Support
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 173.98, 173.60, 173.13
- Resistance: 174.50, 175.35, 175.75
The British Pound continued to move lower against Japanese Yen as expected after the pair produced a bearish Evening Star candlestick pattern. A daily close below support at 173.98, the 23.6% Fibonacci retracement, initially targets the bottom of a rising channel set from late May at 173.60. Alternatively, a reversal above the 14.6% level at 174.50 clears the way for a test of the July 3 high at 175.35.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal argues against taking up the long side. We will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.