GBP/JPY Technical Analysis: Candle Setup Hints at Reversal
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- GBP/JPY Technical Strategy: Flat
- Support: 186.87, 185.74, 184.60
- Resistance: 188.27, 190.53, 192.80
The British Pound may turn lower against the Japanese Yen after putting in a Shooting Star candlestick with negative RSI divergence. A daily close below the 61.8% Fibonacci expansionat 186.87 exposes the 50% level at 185.74. Alternatively, a turn above the 76.4% Fib at 188.27 opens the door for a test of the 100% expansion at 190.53.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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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.