- GBP/JPY Technical Strategy: Flat
- Support: 173.53, 173.13, 172.44
- Resistance: 173.98, 174.50, 175.35
The British Pound moved lower against the Japanese Yen as expected after
producing a bearish Evening Star candlestick pattern. Prices are
testing support at a rising trend line set from late May (173.53), with a
daily close below that exposing the 38.2% Fibonacci retracement at
173.13. Alternatively, a reversal above the 23.6% Fib at 173.98 opens
the door for a move to the 14.6% retracement at 174.50.
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 argues against taking up the long side. We will
remain flat for now.
