GBP/JPY Technical Analysis: Support Found Below 174.00
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- GBP/JPY Technical Strategy: Flat
- Support: 173.98, 173.72, 173.13
- Resistance: 174.50, 175.35, 176.03
The British Pound declined as expected against Japanese Yen after prices put in a bearish Evening Star candlestick pattern. Sellers are testing support at 173.98, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the bottom of a rising channel at 173.72. Alternatively, a move back above the 14.6% level at 174.50 initially opens the door for another challenge of the July 3 high at 175.35.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, looking for a more actionable 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.