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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 184.77, 181.41, 178.85
- Resistance: 186.72, 189.89, 192.45
The British Pound advanced for a third consecutive day against the Japanese Yen, with prices attempting to clear a path toward December’s swing high. A daily close above the 23.6%Fibonacci expansionat 186.72 exposes the 38.2% level at 189.89. Alternatively a reversal below the 14.6% expansion at 184.77opens the door for a test of the 38.2% Fib retracement at 181.41.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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