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

By DailyFx | 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

comments powered by Disqus
Related Forex Analysis
  1. GBP/JPY Technical Analysis: Pound Jumps to 2-Week High
    Forex News

    GBP/JPY Technical Analysis: Pound Jumps to 2-Week High

  2. GBPJPY Long Scalps at Risk Ahead of UK GDP- 174 in View
    Forex News

    GBPJPY Long Scalps at Risk Ahead of UK GDP- 174 in View

  3. US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen
    Forex News

    US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen

  4. GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen
    Forex News

    GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen

  5. GBP/JPY Technical Analysis: A Top in Place Below 173.00?
    Forex News

    GBP/JPY Technical Analysis: A Top in Place Below 173.00?

Trading Center