GBP/JPY Technical Analysis: Down Turn Signaled Ahead
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/JPY Technical Strategy: Flat
- Support: 192.82, 191.32, 190.11
- Resistance: 194.58, 195.82, 196.79
The British Pound may be preparing to turn lower against the Japanese Yen once again after prices produced a Bearish Engulfing candlestick pattern. Near-term support is at 192.82 (23.6% Fibonacci retracement, trend line), with a break below that on a daily closing basis exposing the 38.2% level at 191.32. Alternatively, a push above the 38.2% Fib expansion at 194.58 opens the door for a challenge of the 195.69-82 area (50% threshold, June 18 high).
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!
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com