GBP/JPY Technical Analysis: Preparing to Launch Rebound?
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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 declined against the Japanese Yen as expected after putting in a bearish Evening Star candlestick pattern. A daily close below the 38.2% Fibonacci expansionat 170.79 exposes the 50% level at 170.24. Alternatively, a turn above the 23.6% Fib at 171.47 opens the door for a test of the 14.6% expansion at 171.89.
Positioning appears inconclusive. On one hand, positive RSI divergence hints at ebbing downside momentum and hints a move higher is ahead but a defined bullish signal is absent. On the other, prices are too close to support to justify entering short from a risk/reward perspective. We will remain flat.
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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.