GBP/JPY Technical Analysis: Yen Ready to Restart Advance?

By DailyFx | Updated August 26, 2014 AAA

DailyFX.com -

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 171.87, 171.15, 170.56
  • Resistance: 173.02, 174.20, 175.35

The British Pound may be readying to turn lower anew against the Japanese Yen after prices put in a Bearish Engulfing candlestick pattern. A daily close below the 23.6% Fibonacci expansion at 171.87 exposes the 38.2% level at 171.15. Alternatively, a reversal above falling trend line resistance set from early July, now at 173.02, clears the way for a challenge of the July 30 high at 174.20.

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: Yen Ready to Restart Advance?

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. BoJ Jumps the Shark as JPY Implodes on Surprise Easing
    Forex News

    BoJ Jumps the Shark as JPY Implodes on Surprise Easing

  2. GBP/JPY Technical Analysis: Resistance Just Below 176.00
    Forex News

    GBP/JPY Technical Analysis: Resistance Just Below 176.00

  3. Japanese Yen Remains a sell versus GBP
    Forex News

    Japanese Yen Remains a sell versus GBP

  4. GBP/JPY Technical Analysis: Rally Stalls Ahead of 175.00
    Forex News

    GBP/JPY Technical Analysis: Rally Stalls Ahead of 175.00

  5. GBP/JPY Technical Analysis: Pound Aiming Above 175.00
    Forex News

    GBP/JPY Technical Analysis: Pound Aiming Above 175.00

Trading Center