GBP/JPY Technical Analysis: Candle Setup Hints at Bounce

By DailyFx | Updated August 12, 2014 AAA

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Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.54, 170.97, 170.69
  • Resistance: 172.06, 172.91, 173.60

The British Pound may be gearing up for a corrective upswing against the Japanese Yen after prices completed a bullish Three Inside Up candlestick pattern. Near-term resistance is at 172.06, the 23.6% Fibonacci expansion, with a break above that on a daily closing exposing the 38.2% level at 172.91. Alternatively, a reversal below the 14.6% Fib at 171.54 targets rising trend line support set from mid-March, now at 170.97

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.

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GBP/JPY Technical Analysis: Candle Setup Hints at Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

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