Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
GBP/JPY Technical Analysis: Head and Shoulders Top Set?

GBP/JPY Technical Analysis: Head and Shoulders Top Set?

Ilya Spivak,

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 179.58, 177.91, 176.23
  • Resistance: 181.46, 183.91, 185.01

The British Pound looks poised to decline against the Japanese Yen after prices completed a bearish Head and Shoulders top chart formation. Near-term support is at 179.58, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 177.91. Alternatively, a turn above neckline support-turned-resistance at 181.46 clears the way for a challenge of the March 10 high at 183.91.

Tactical considerations argue against taking a short position. Maintaining at least a 1:1 risk/reward ratio with a stop-loss activated on a daily close above 183.91 and a target at 179.58 would require an entry price no lower than 181.75. That requires a move back above neckline resistance, which may itself negate the setup. With that in mind, we will remain flat.

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.

DISCLOSURES