Sunday, February 2, 2014

Forex: GBP/JPY Technical Analysis ? Flag Pattern Taking Shape?




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Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 167.48 (Flag bottom), 164.23 (38.2% Fib ret.)


  • Resistance: 168.28 (23.6% Fib ret.), 170.78 (14.6% Fib ret.)


The British Pound continues to drift lower against the Yen, with prices tracing out what could ultimately prove to be a Flag chart pattern. If confirmed on a daily close above the setup’s upper boundary (currently at 173.11), the setup would argue for bullish continuation.



Entering long seems premature at the moment absent a clear-cut reversal signal however, particularly given last week’s push through near-term support at 168.28 (23.6% Fibonacci retracement). We will stand aside for now as sellers test the Flag’s lower boundary, waiting for a more concrete directional cues to emerge before considering a position.



Confirm your chart-based trade setups with the Technical Analyzer.


dailyclassics_gbp-jpy_body_Picture_12.png, Forex: GBP/JPY Technical Analysis – Flag Pattern Taking Shape?


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com



Contact and follow Ilya on Twitter: @IlyaSpivak



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Forex: GBP/JPY Technical Analysis ? Flag Pattern Taking Shape?

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