GBP/JPY Technical Analysis: Trend Line Resistance at Risk

By DailyFx | August 24, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.58, 170.54, 169.79
  • Resistance: 172.30, 172.88-173.13, 173.47

The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. The emergence of positive RSI divergence preceded a correction higher as we suspected, with prices now testing the 38.2% Fibonacci retracementat 172.30. A daily close above this barrier exposes the 172.88-173.13 area, marked by a falling trend line and the 50% level. Alternatively, a reversal below the 23.6% Fib at 171.58 clears the way for a challenge of the August 15 low at 170.41.

Prices are too close resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.

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

GBP/JPY Technical Analysis: Trend Line Resistance at Risk

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles
    Forex News

    USDOLLAR Breaks October Downtrend, GBP’s GDP Rally Fizzles

  2. GBP/JPY Technical Analysis: Pound Jumps to 2-Week High
    Forex News

    GBP/JPY Technical Analysis: Pound Jumps to 2-Week High

  3. GBPJPY Long Scalps at Risk Ahead of UK GDP- 174 in View
    Forex News

    GBPJPY Long Scalps at Risk Ahead of UK GDP- 174 in View

  4. US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen
    Forex News

    US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen

  5. GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen
    Forex News

    GBP/JPY Technical Analysis: Pound Sold vs. Japanese Yen

Trading Center