News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/JPY Technical Analysis: Top Set Below 190.00 Figure?

GBP/JPY Technical Analysis: Top Set Below 190.00 Figure?

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 187.80, 186.43, 184.22
  • Resistance: 189.70, 191.19, 192.81

The British Pound put in a Bearish Engulfing candlestick pattern, hinting a top against the Japanese Yen may be in place. Near-term support is at 187.80, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 186.43. Alternatively, a turn above the December 5 high at 189.70 opens the door for a challenge of the 38.2% Fib expansion at 191.19.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/JPY Technical Analysis: Top Set Below 190.00 Figure?

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.

DISCLOSURES