Monday, September 29, 2014

GBP/JPY Technical Analysis: Waiting for Follow-Through




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Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 176.35, 175.01, 173.67


  • Resistance: 179.31, 180.97, 182.31


The British Pound is in digestion mode after breaking below rising trend line support guiding the rising trend against the Japanese Yen since early September. A daily close below the 176.35-63 area marked by the September 23 low and the 38.2% Fibonacci retracement exposes the 50% level at 175.01. Alternatively, a turn above the intersection of the broken trend line and the 23.6% Fib expansion at 179.31 clears the way for a challenge of the 180.69-97 region bracketed by the 38.2% threshold and the September 19 high.



The trend line break argues for a position but we will opt to pass on the trade for now. Prices have yet to overcome the bounds of the range that has contained activity since mid-month and we would like to see evidence of follow-through before establishing exposure.



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GBP/JPY Technical Analysis: Waiting for Follow-Through


Daily Chart – Created Using FXCM Marketscope 2.0



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





GBP/JPY Technical Analysis: Waiting for Follow-Through

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