GBP/JPY Technical Analysis: Bottom Forming at August Low?
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- GBP/JPY Technical Strategy: Flat
- Support: 170.41, 169.00, 167.84
- Resistance: 171.63, 172.34, 173.05
The British Pound continues to test key support marked by the mid-August low against the Japanese Yen. A daily close below the August 15 low at 170.41 exposes the 169.00-33 area marked by the September 8 low and the 100% Fibonacci expansion. Alternatively, a reversal above the 38.2% Fib retracement at 171.63 clears the way for a challenge of the 50% threshold at 172.34.
Risk/reward considerations argue against entering short with prices sitting at support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.