Sunday, June 29, 2014

GBP/JPY Technical Analysis ? Pound Drops to 2-Week Low




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Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 172.34, 171.80, 171.27


  • Resistance: 172.79, 173.00, 173.41


The British Pound declined against the Japanese Yen as expected after prices produced a Shooting Star candlestick below the 174.00 figure. Sellers now aim to challenge support at 172.34, the 38.2% Fibonacci retracement. A break below that on a daily closing basis exposes the 50% level at 171.80. Near-term resistance is in the 172.79-173.00 area, marked by a formerly broken triple top and the 23.6% Fib. A reversal back above that targets the 14.6% retracement at 173.41.



The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside, waiting for a more attractive opportunity to present itself.



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GBP/JPY Technical Analysis – Pound Drops to 2-Week Low


Daily Chart – Created Using FXCM Marketscope 2.0



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





GBP/JPY Technical Analysis ? Pound Drops to 2-Week Low

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