GBP/JPY Technical Analysis: Candle Setup Hints at Losses
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 187.80, 186.43, 184.22
- Resistance: 189.70, 191.19, 192.81
The British Pound may be carving out a top against the Japanese Yen after putting a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci retracement at 187.80 exposes the 23.6% level at 186.43. Alternatively, a reversal above the December 5 high at 189.70 clears the way for a test of the 38.2% Fib expansion at 191.19.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.