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Forex: GBP/JPY Technical Analysis – Pound Rally Loses Steam

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Talking Points:

The British Pound is treading water below the 143.00 figure to the Japanese Yen. Near-term resistance at 172.81, the 50% Fibonacci expansion, with a break above that targeting the 61.8% level at 173.76. Alternatively, a move below support at 171.87 – the 38.2% Fib – aims for the 23.6% expansion at 170.70.

Prices are wedged too tightly between short-term support and resistance levels to justify a trade on risk/reward grounds. A Shooting Star candlestick seemingly warns of ebbing upside momentum and hints a turn lower may be in the cards, but confirmation remains elusive. We will remain on the sidelines for now until greater clarity emerges.

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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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