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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 170.69, 169.33, 167.99
- Resistance: 172.85, 174.34, 175.84
The British Pound may be readying to turn lower against the Japanese Yen after prices put in a Harami candlestick pattern. A daily close below the 170.69-99 area (August 8 low, 23.6% Fib) exposes the September 8 low at 169.33. Alternatively, a break above the 38.2% Fibonacci retracementat 172.85 opens the door for a test of the 173.83-174.34 zone (July 30 close, 50% level).
A Harami pattern is not a sufficiently actionable signal to enter short without further confirmation. We will remain on the sidelines for now, waiting for positioning to offer greater clarity before committing to a trade.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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