To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 180.72, 178.28, 176.32
- Resistance: 184.91, 187.30, 189.22
The British Pound may be carving out a top against the Japanese Yen after prices put in a bearish Dark Cloud Cover candlestick pattern. Negative RSI divergence reinforces the case for a decline. Near-term support is in the 180.72-181.06 area, marked by the November 10 low and the 23.6% Fibonacci, with a break below that on a daily closing basis exposing the 38.2% level at 178.28. Alternatively, a reversal above the 23.6% Fib expansion at 184.91 clears the way for a challenge of the 38.2% threshold at 187.30.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
