DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 173.98, 173.44, 173.13
  • Resistance: 174.50, 175.35, 175.75

The British Pound may have set a top against the Japanese Yen after prices put in a bearish Evening Star candlestick pattern. Sellers are aiming to challenge support at 173.98, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the bottom of a firing channel at 173.44. Alternatively, a move back above the 14.6% level at 174.50 initially opens the door for another challenge of the July 3 high at 175.35.

Risk/reward considerations argue against entering short with prices sitting 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.

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

GBP/JPY Technical Analysis – A Top in Place Above 175.00?

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/JPY Technical Analysis: Slowly Inching Downward

  2. Forex News

    US Dollar May Break to Further Lows if it Fails at Key Support

  3. Forex News

    Pound Sold vs Yen on Trend Line Break

  4. Forex News

    GBP/JPY Technical Analysis: Downturn Clues Re-Emerge

  5. Forex News

    Does the Dollar Break down Here or Resume its Larger Uptrend?

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!