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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 186.87, 185.74, 184.60
- Resistance: 188.27, 190.53, 192.80
The British Pound is attempting to turn lower against the Japanese Yen as expected after showing a Shooting Star candlestick with negative RSI divergence. Near-term support is at 186.87, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 185.74. Alternatively, a move above the 76.4% Fib at 188.27 opens the door for a challenge of the 100% expansion at 190.53.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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