GBP/JPY Technical Analysis: Pound Recovery in the Cards?
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- GBP/JPY Technical Strategy: Flat
- Support: 181.37, 180.25, 179.12
- Resistance: 183.67, 185.06, 186.18
The British Pound may be preparing to turn higher against the Japanese Yen after producing a Bullish Engulfing candlestick pattern. A daily close above the 23.6% Fibonacci expansionat 183.67 exposes the 38.2% level at 185.06. Alternatively, a reversal below the 38.2% Fib retracement at 181.37 opens the door for a test of the 50% threshold at 180.25.
Positioning is inconclusive at this point. The Engulfing pattern remains technically valid but follow-through confirming the reversal has been absent. With that in mind, we will remain on the sidelines for the time being and wait for a more compelling setup to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com