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- GBP/JPY Technical Strategy: Flat
- Support: 169.28 (23.6% Fib exp.), 167.68 (38.2% Fib exp.)
- Resistance: 171.22 (trend line), 171.87 (Feb 18 high)
Prices are stalling below trend line resistance set from early January, with a Shooting Star candlestick hinting the British Pound may be carving out a top against the Japanese Yen. A break below initial support is at 169.28, the 23.6% Fibonacci expansion, exposes the 38.2% level at 167.68. Alternatively, a push above the trend line (now at 171.22) targets the February 18 high at 171.87.
A string of consecutive indecision candles and flat-lining daily change readingshint at ebbing bullish momentum but fall short of offering firm confirmation of reversal. Risk/reward considerations are also skewed against taking a trade with prices trading too close to relevant up- and down-side technical barriers. We will continue stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com