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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 173.44, 172.59, 171.75
- Resistance: 173.96, 174.82, 175.35-50
The British Pound moved lower against the Japanese Yen as expected after producing a bearish Evening Star candlestick pattern. A daily close below support at 173.44, the 14.6% Fibonacci expansion exposes the July 23 low at 173.59. Alternatively, a reversal above the 23.6% Fib at 173.96 clears the way for a test of 174.82, the 38.2% expansion.
Prices are wedged too closely between near-term support and resistance levels to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
