GBP/JPY Technical Analysis: Support Found Below 171.00
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- GBP/JPY Technical Strategy: Flat
- Support: 170.79, 170.24, 169.69-79
- Resistance: 171.47, 171.89, 172.57
The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. Near-term support is at 170.79, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 170.24. Alternatively, a reversal above the 23.6% Fib at 171.47 clears the way for a challenge of the 14.6% expansion at 171.89.
Prices are too close support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.