GBP/JPY Technical Analysis: Pound Launches Recovery

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: 173.44, 172.59, 171.75
  • Resistance: 173.96, 174.82, 175.35-50

The British Pound launched a recovery against the Japanese Yen having found support below the 173.00 figure. Near-term resistance is at 173.96, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 174.82. Alternatively, a reversal back below the 14.6% Fib at 173.44 opens the door for a challenge of the door for a challenge of the July 23 low at 173.59.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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: Pound Launches Recovery

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBPJPY Sentiment Remains Elevated

  2. Forex News

    GBP/JPY Technical Analysis: Top in Place at 185.00 Figure?

  3. Forex News

    US Dollar May Break to Further Highs but Euro’s Next Move Critical

  4. Forex News

    British Pound Outlook Mixed versus Japanese Yen

  5. Forex News

    GBP/JPY Technical Analysis: Poised to Challenge 185.00

Trading Center