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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 181.41, 178.85, 176.29
- Resistance: 184.77, 186.72, 189.89
The British Pound found support above the 181.0 figure and recoiled upward in attempt to resume its uptrend against the Japanese Yen. A daily close above the 14.6% Fibonacci expansion at 184.77 exposes the 23.6% level at 186.72. Alternatively, a reversal below the 38.2% Fib retracement at 181.41 opens the door for a test of the 50% threshold at 178.85.
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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