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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 169.33, 167.99, 166.00
- Resistance: 170.99, 172.85, 174.34
The British Pound managed to stave off a breakdown at familiar support above the 169.00 figure against the Japanese Yen. Near-term resistance is in the 170.69-99 area marked by the August 8 low and the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 172.85. Alternatively, a reversal below the September 8 low at 169.33 clears the way for a challenge of the October 15 low at 167.99.
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 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 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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