GBP/JPY Technical Analysis: Upside Follow-Through Absent
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- GBP/JPY Technical Strategy: Flat
- Support: 177.17, 176.31, 175.15
- Resistance: 178.48, 179.73, 180.74
The British Pound may be set to rise against the Japanese Yen after showing a bullish Morning Star candlestick pattern but follow-through has been absent so far. A daily close above the 23.6% Fibonacci retracement at 178.48 exposes the 38.2% level at 179.73. Alternatively, a turn below the 14.6% Fib expansion at 177.17 opens the door for a test of the 176.31-40 area (23.6% threshold, triple bottom).
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com