GBP/JPY Technical Analysis: Now Aiming Below 182.00 Mark
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 181.41, 178.85, 176.29
- Resistance: 184.58, 186.53, 188.69
The British Pound turned lower against the Japanese Yen as expected after the appearance of a bearish Evening Star candlestick pattern. A daily close below the 38.2% Fibonacci retracementat 181.41 exposes the 50% level at 178.85. Alternatively, a reversal above the 23.6% Fib at 184.58 opens the door for a test of the 14.6% expansion at 186.53.
While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside. Yen-based pairs are highly sensitive to swings in sentiment trends, which may turn volatile and derail current technical cues following the looming FOMC policy announcement. We will wait for event risk to pass before committing to a directional bias.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- 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.