Sunday, November 2, 2014

GBP/JPY Technical Analysis: Pound Soars to 6-Week High




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



Talking Points:



  • GBP/JPY Technical Strategy: Flat


  • Support: 177.70, 175.84, 174.34


  • Resistance: 180.69, 182.55, 183.69


The British Pound soared to the highest level in six weeks against the Japanese Yen after an unexpected expansion of BOJ stimulus. A daily close above the September 19 highat 180.69 exposes the 114.6% Fibonacci extension at 182.55. Alternatively, a reversal below the 76.4% Fib retracement at 177.70 opens the door for a test of the 61.8% level at 175.84.



Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.



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


GBP/JPY Technical Analysis: Pound Soars to 6-Week High


Daily Chart – Created Using FXCM Marketscope 2.0



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





GBP/JPY Technical Analysis: Pound Soars to 6-Week High

No comments:

Post a Comment