GBP/JPY Technical Analysis: Passing on Short Trade Setup
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- GBP/JPY Technical Strategy: Flat
- Support: 181.41, 178.85, 176.29
- Resistance: 184.58, 186.53, 188.69
The British Pound declined as expected against the Japanese Yen after putting in a bearish Evening Star candlestick pattern. Near-term support is at 181.41, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 178.85. Alternatively, a turn above the 23.6% Fib at 184.58 clears the way for a challenge of the 14.6% expansion at 186.53.
Entering short is tempting but we will tactically opt to stand aside, waiting for the upcoming FOMC policy announcement to pass before committing to a directional bias. The outcome may spell volatility for sentiment-sensitive Yen-based currency pairs, threatening to derail follow-through on technical positioning.
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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.