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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 173.24, 172.80, 172.45
- Resistance: 173.95, 174.66, 175.10
The British Pound may be preparing for a pullback against the Japanese Yen after prices put in a Shooting Star candlestick. Near-term support is at 173.24, the 76.4% Fibonacci expansion, with a turn below that on a daily closing basis exposing the 61.8% level at 172.80. Resistance comes in at 173.95, the 100% Fib. A push through that opens the door for a challenge of the 123.6% level at 174.66.
A Shooting Star candlestick is indicative of indecision and further confirmation is needed to make for an actionable short trade signal. With that in mind, we will stand aside for now until an actionable opportunity emerges.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com