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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 launched a recovery against the Japanese Yen, with buyers reclaiming a foothold above the 185.00 figure. Near-term resistance is at 186.72, the 23.6%Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 189.89. Alternatively a reversal turn below the 14.6% expansion at 184.77clears the way for a challenge of the 38.2% Fib retracement at 181.41.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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