GBP/JPY Technical Analysis: Candle Hints at Down Move
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- GBP/JPY Technical Strategy: Flat
- Support: 181.37, 179.30, 177.62
- Resistance: 184.27, 186.34, 187.79
The British Pound remains stuck in a familiar range against the Japanese Yen but a Shooting Star candle now hints a downswing may be ahead. A daily close above the 61.8% Fibonacci retracementat 184.27 exposes the 76.4% level at 186.34. Alternatively, a turn below the 181.37-79 area (February 6 high, 23.6% Fib expansion) opens the door for a test the 38.2% threshold at 179.30.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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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.