GBP/JPY Technical Analysis – Critical Trend Line Under Fire

| 11 april, 2014 | 0 kommentarer

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

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 170.26-169.86 (trend line from Aug’13, 38.2% Fib ret.)
  • Resistance:171.27 (23.6% Fib ret.), 173.13-56 (Mar 7, Apr 3 swing highs)

The British Pound may be on the verge of a major downward reversal against the Japanese Yen as prices test below rising trend line set from August 2013. This barrier is reinforced by the 38.2% Fibonacci retracement at 169.86. A break above the latter level on a daily closing basis initially exposes the 50% Fib at 168.71. Alternatively, a turn above resistance at 171.27, the 23.6% retracement, aims for the 173.13-56 area marked by the March 7 and April 3 swing highs.

Risk/reward considerations argue against entering short with prices trading in close proximity to relevant support. On the other hand, taking up the short side looks premature absent a defined bearish reversal signal. As such, we will remain flat for now.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_gbp-jpy_body_Picture_11.png, GBP/JPY Technical Analysis  Critical Trend Line Under Fire

Daily Chart – Created Using FXCM Marketscope 2.0

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

Taggar: ,

Kategori: Analys från DailyFX

Om skribenten ()

DailyFX från FXCM ger dig dagligen färska tekniska analyser på valuta och råvaror. FXCM är en ledande handelsplattform för trading av finansiella tillgångar med kraftfulla verktyg för alla sorters handel.

Lämna ett svar

Din e-postadress kommer inte publiceras. Obligatoriska fält är märkta *