To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 181.41, 178.85, 176.29
- Resistance: 184.58, 186.53, 187.53
The British Pound is testing December’s swing bottom against the Japanese Yen having entered 2015 facing heavy selling pressure. Near-term support is at 181.41-60 area, marked by the December 16 low and the 38.2%Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 178.85. Alternatively a reversal above the 23.6% Fib at 184.58clears the way for a challenge of the 14.6% retracement at 186.53.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
