DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 172.44, 171.75, 170.90
  • Resistance: 173.22, 173.74, 174.59

The British Pound is edging downward against the Japanese Yen as expected after prices put in a bearish Evening Star candlestick pattern. Near-term support is at 172.44, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 171.75. Alternatively, a reversal above the 173.13-22 area marked by the 38.2% retracement and the 14.6% Fib expansion, opens the door for a challenge of the 23.6% threshold at 173.74.

Risk/reward considerations argue against entering long with prices trading in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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: Consolidating Near 173.00 Mark

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Forex Trader Sentiment Swings, Lifting US Dollar Outlook from ’Bearish’

  2. Forex News

    GBP/JPY Technical Analysis: Downturn Hinted at 190.00

  3. Forex News

    GBP/JPY Technical Analysis: Pound Moves to 7-Year High

  4. Forex News

    US Dollar Targets Fresh Highs versus Yen, Euro - Levels to Watch

  5. Forex News

    GBP/JPY Technical Analysis: Top Set Below 190.00 Figure?

Trading Center