GBP/JPY Technical Analysis: Waiting to Confirm Reversal
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- GBP/JPY Technical Strategy: Flat
- Support: 189.29, 187.79, 185.01
- Resistance: 190.00, 191.36, 193.57
The British Pound may be preparing to turn lower against the Japanese Yen after prices put in a Harami candlestick pattern coupled with negative RSI divergence. A daily close below trend line support at 189.29 exposes the December 29 high at 187.79. Alternatively, a push abovethe 189.70-190.00 area (December 5 high, 14.6% Fibonacci expansion) clears the way for a test of the 23.6% level at 191.36.
Confirmation of downward reversal is lacking for now absent a clear-cut break of trend line support, warning against entering a short trade. With that in mind, we will continue to stand aside for now and wait for a more actionable setup to present 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.