GBP/JPY Technical Analysis: Key Trend Line Under Fire

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 173.39, 173.13, 172.44
  • Resistance: 173.98, 174.50, 175.35

The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. Prices are testing support at a rising trend line set from late May (173.39), with a daily close below that exposing the 38.2% Fibonacci retracement at 173.13. Alternatively, a reversal above the 23.6% Fib at 173.98 opens the door for a move to the 14.6% retracement at 174.50.

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 argues against taking up the long side. We will remain flat for now.

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

GBP/JPY Technical Analysis: Key Trend Line Under Fire

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/JPY Technical Analysis: Targeting Above 181.00 Figure

  2. Forex News

    GBP/JPY Technical Analysis: Pausing to Digest Advance

  3. Forex News

    Pullback in British Pound Clouds Outlook versus Yen

  4. Forex News

    FX Crowd Positions Point to Continued US Dollar Losses, Euro Gains

  5. Forex News

    Trading Video: Dollar Reversal Still Lacking Drive, Pound Makes a Move

Trading Center