British Pound Positions to Reverse Lower Against Japanse Yen

The British Pound has gained against the Japanese Yen in recent days, with the perennial carry cross boosted as risk appetite improved on better-than-expected earnings announcements from key companies to start the second-quarter reporting season. Technical positioning looks favorable of a return to downward momentum, however, with prices showing a Dark Cloud Cover bearish reversal candlestick pattern following a test of support-turned-resistance at a rising trend line established from the lows in January. Confirmation will be seen on a daily close below the 23.6% Fibonacci retracement of the 01/21-06/12 rally at 152.42, opening the door for a decline to the 38.2% Fib at 146.10.

[I]Created Using CQG - Prepared by Ilya Spivak[/I]