To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- 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.
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
