GBP/JPY Technical Analysis: 5-Month Support Under Pressure

By DailyFx | Updated August 06, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.96, 171.56, 170.66
  • Resistance: 172.45, 173.49, 174.20-53

The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. A daily close below support at 171.96, marked by a rising trend line set from mid-March, exposes the 50% Fibonacci retracement at 171.56. Alternatively, a turn above the 38.2% level at 172.45 clears the way for a test of the August 5 high at 173.49.

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 entering long 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!

GBP/JPY Technical Analysis: 5-Month Support Under Pressure

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. GBP/JPY Technical Analysis: Resistance Found Above 186.00
    Forex News

    GBP/JPY Technical Analysis: Resistance Found Above 186.00

  2. GBP/JPY Technical Analysis: Passing on Long Trade Setup
    Forex News

    GBP/JPY Technical Analysis: Passing on Long Trade Setup

  3. Sterling Poised for Gains versus Downtrodden Japanese Yen
    Forex News

    Sterling Poised for Gains versus Downtrodden Japanese Yen

  4. GBP/JPY Technical Analysis: Pound Pushes to 6-Year High
    Forex News

    GBP/JPY Technical Analysis: Pound Pushes to 6-Year High

  5. GBP/JPY Technical Analysis: Topping Confirmation Pending
    Forex News

    GBP/JPY Technical Analysis: Topping Confirmation Pending

Trading Center