We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Breaking news

British Pound surges after UK exit poll shows Conservatives expected to win 368 seats out of 650

GBP/JPY Technical Analysis: Sinking to Channel Support

GBP/JPY Technical Analysis: Sinking to Channel Support

2014-07-08 21:51:00
Ilya Spivak, Sr. Currency Strategist
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • 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!

GBP/JPY Technical Analysis: Sinking to Channel Support

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.

DISCLOSURES

News & Analysis at your fingertips.