DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 172.30, 171.58, 170.56
  • Resistance: 172.88-173.08, 173.47, 174.19

The British Pound began a correction upward against the Japanese Yen as expected following the appearance of positive RSI divergence. Near-term resistance is at 172.88-173.08 area, marked by the 50% Fibonacci retracement and a falling trend line set from early July, with a break above that on a daily closing basis exposing the 61.8% level at 173.47. Alternatively, a turn below the 38.2% Fib at 172.30 opens the door for a test of the 23.6% expansionat 171.58.

The available trading range is too narrow to justify taking a short or a long position at current levels from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.

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

GBP/JPY Technical Analysis: Pound Bounce Eyes Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    Global Economy, Central Banks Look for Further Improvement in GDP Data

  2. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  3. Forex News

    GBP/JPY Technical Analysis: Pound Finds Interim Support

  4. Forex News

    Hawkish BoE and Fed Look to Data for 2015 Liftoff

  5. Forex News

    GBP/JPY Technical Analysis: Aiming Below 191.00 Figure

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!