GBP/JPY Technical Analysis: Support Established at 175.00?
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- GBP/JPY Technical Strategy: Flat
- Support: 175.01, 173.67, 172.01
- Resistance: 176.35, 177.39, 178.41
The British Pound may be readying to turn higher after against the Japanese Yen after prices put an Inverted Hammer candlestick. A daily close above the 38.2% Fibonacci retracement at 176.35 exposes 177.39, a former range bottom now recast as resistance. Alternatively, a push through supportin the 175.01-35 area marked by the July 3 high and the 50% level clears the way for a challenge of the 61.8% level at 173.67.
An Inverted Hammer candlestick speaks to indecision and does not make for an actionable buying signal absent further confirmation. On the other hand, entering short with prices squarely at support is unattractive from a risk/reward perspective. With that in mind, we will remain on the sidelines.
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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.