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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 184.58, 181.41, 178.85
- Resistance: 187.99, 189.70, 191.42
The British Pound turned lower against the Japanese Yen as expected after the appearance of a bearish Evening Star candlestick pattern. A daily close below the 23.6% Fibonacci retracementat 184.58 exposes the 38.2% level at 181.41. Alternatively, a reversal above channel floor support-turned-resistance at 187.99 opens the door for a test the December 5 high at 189.70.
Current positioning does not offer an actionable trade setup. Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of an immediate bearish reversal signal suggests taking up the short side is premature.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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