GBP/JPY Technical Analysis: Resistance Sub-179.00 in Focus
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- GBP/JPY Technical Strategy: Flat
- Support: 178.11, 176.31, 174.86
- Resistance: 178.71, 180.11, 181.23
The British Pound is attempting to launch a recovery against the Japanese Yen after putting in a bullish Morning Star candlestick pattern, as expected. A daily close above the 23.6% Fibonacci expansion at 178.71 exposes the 38.2% level at 180.11. Alternatively, a turn below resistance-turned-support at 178.11 opens the door for a test of a triple bottom 176.31.
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