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Forex: GBP/JPY Technical Analysis ? Flag Pattern Taking Shape?

February 2, 2014

Ilya Spivak

Talking Points: GBP/JPY Technical Strategy: Flat Support: 167.48 (Flag bottom), 164.23 (38.2% Fib ret.) Resistance: 168.28 (23.6% Fib ret.), 170.78 (14.6% Fib ret.) The British Pound continues to drift lower against the Yen , with prices tracing out what could ultimately prove to be a Flag chart pattern. If confirmed on a daily close above the setup's upper boundary (currently at 173.11), the setup would argue for bullish continuation. Entering long seems premature at the moment absent a clear-cut reversal signal however, particularly given last week's push through near-term support at 168.28 (23.6% Fibonacci retracement). We will stand aside for now as sellers test the Flag's lower boundary, waiting for a more concrete directional cues to emerge before considering a position.

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Source: DailyFx

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