GBP/JPY Technical Analysis: Candle Setup Hints at Bounce

By DailyFx | Updated August 12, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.54, 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.

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

GBP/JPY Technical Analysis: Candle Setup Hints at Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Fed Fear Builds USD, Greece Unnerves the Euro but S&P Yet to Collapse

  2. Forex News

    GBP/JPY Technical Analysis: Sellers Aim at Key Triple Top

  3. Forex News

    Trading Video: EURUSD Breaks its Wedge as the S&P 500 Tumble Continues

  4. Forex News

    US Dollar Looks like a Sell versus Euro and Japanese Yen

  5. Forex News

    British Pound May Fall Further versus Yen

Trading Center