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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 183.47, 181.84, 179.19
- Resistance: 186.60, 188.23, 190.88
The British Pound has entered consolidation mode after finding resistance below the 187.00 figure against the Japanese Yen. A daily close above resistance in the 186.11-60 area marked by the November 20 high and the 14.6% Fibonacci expansion exposes the 23.6% level at 188.23. Alternatively, a turn below the 183.47-184.31 zone (November 6 high, 14.6% Fib retracement) opens the door for a test of the 23.6% retracement at 181.84.
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 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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