GBP/JPY Technical Analysis: Yen Recovery Hinted Ahead
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- GBP/JPY Technical Strategy: Flat
- Support: 173.87, 173.39, 172.61
- Resistance: 175.00, 175.62, 176.25
The British Pound could be topping against the Japanese Yen after producing a Bearish Engulfing candlestick pattern. Near-term support is at 173.87, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 173.39. Alternatively, a reversal above the 174.64-175.00 area marked by the 38.2% Fib expansion and the September 12 high opens the door for a test of the 175.35-62 zone bracketed by the July 3 top and the 50% threshold.
The looming Scottish Independence referendum injects an uncomfortable degree of uncertainty into the outlook, arguing taking long or short positions on the Pound for the time being. With that in mind, we will opt to stand aside.
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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.