GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen
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- GBP/JPY Technical Strategy: Short at 172.16
- Support: 170.69, 169.33, 167.99
- Resistance: 172.85, 174.34, 175.84
The British Pound declined as expected against the Japanese Yen, extending a Harami candlestick pattern to complete a bearish Evening Star setup. Near-term support is in the 170.69-171.13 area (August 8 low, 14.6% Fibonacci expansion), with a break below that on a daily closing basis exposing the 23.6% level at 169.99. Alternatively, a break above the October 20 high at 172.99clears the way for a challenge of a horizontal pivot in play since late July at 173.83.
We will now enter short, initially targeting 171.13. A stop-loss will be activated on a daily close above 172.99. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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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.