GBP/JPY Technical Analysis: Candle Setup Hints at Bounce
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- GBP/JPY Technical Strategy: Flat
- Support: 171.54, 170.97, 170.69
- Resistance: 172.06, 172.91, 173.60
The British Pound may be gearing up for a corrective upswing against the Japanese Yen after prices completed a bullish Three Inside Up candlestick pattern. Near-term resistance is at 172.06, the 23.6% Fibonacci expansion, with a break above that on a daily closing exposing the 38.2% level at 172.91. Alternatively, a reversal below the 14.6% Fib at 171.54 targets rising trend line support set from mid-March, now at 170.97
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind 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.