GBP/JPY Technical Analysis: Sinking to Channel Support

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: 173.98, 173.60, 173.13
  • Resistance: 174.50, 175.35, 175.75

The British Pound continued to move lower against Japanese Yen as expected after the pair produced a bearish Evening Star candlestick pattern. A daily close below support at 173.98, the 23.6% Fibonacci retracement, initially targets the bottom of a rising channel set from late May at 173.60. Alternatively, a reversal above the 14.6% level at 174.50 clears the way for a test of the July 3 high at 175.35.

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: Sinking to Channel Support

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. GBP/JPY Technical Analysis: Turn Downward May Be Ahead
    Forex News

    GBP/JPY Technical Analysis: Turn Downward May Be Ahead

  2. GBP/JPY Technical Analysis: Digesting Gains Below 187.00
    Forex News

    GBP/JPY Technical Analysis: Digesting Gains Below 187.00

  3. GBP/JPY Technical Analysis: Resistance Found Above 186.00
    Forex News

    GBP/JPY Technical Analysis: Resistance Found Above 186.00

  4. GBP/JPY Technical Analysis: Passing on Long Trade Setup
    Forex News

    GBP/JPY Technical Analysis: Passing on Long Trade Setup

  5. Sterling Poised for Gains versus Downtrodden Japanese Yen
    Forex News

    Sterling Poised for Gains versus Downtrodden Japanese Yen

Trading Center