GBP/JPY Technical Analysis: Stalling After Support Break
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- GBP/JPY Technical Strategy: Flat
- Support: 172.44, 171.75, 170.90
- Resistance: 173.13, 173.98, 174.50
The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. A daily close below support at 172.44, the 50% Fibonacci retracement exposes the 61.8% level at 171.75. Alternatively, a reversal above the 38.2% Fib at 173.13 clears the way for a test of 173.98, the intersection of a rising trend line set from late May and the 23.6% retracement.
Prices are wedged too closely between near-term support and resistance levels to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an 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