News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/JPY Technical Analysis: Bounce Runs Into Resistance

GBP/JPY Technical Analysis: Bounce Runs Into Resistance

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 173.65, 173.13, 172.44
  • Resistance: 174.32, 175.17-35, 175.86

The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. Prices recovered from rising trend line support set from late May to test the 23.6% Fibonacci expansionat 174.32, with a break daily close above this threshold exposing the 175.17-35 marked by the 38.2% level and the July 3 high. Alternatively, a turn back below trend line support – now at 173.65 – clears the way for a challenge of the 38.2% Fib retracement at 173.13.

Risk/reward considerations argue against entering long with prices sitting squarely at resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/JPY Technical Analysis: Bounce Runs Into Resistance

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