GBP/JPY Technical Analysis: Support Found Below 171.00
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- GBP/JPY Technical Strategy: Flat
- Support: 170.66, 169.55, 167.76
- Resistance: 171.56, 172.10, 172.45
The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. A daily close below the 61.8% Fibonacci retracement at 170.66 exposes the 76.4% level at 169.55. Alternatively, a turn above the 50% Fib at 171.56 opens the door for a test of rising trend line support-turned-resistance at 172.10.
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.
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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.