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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 178.51, 177.43, 175.67
- Resistance: 180.36, 181.78, 183.20
The British Pound advanced as expected against the Japanese Yen but the advance has paused ahead near the 180.00 figure. A daily close above the 38.2%Fibonacci retracement at 180.36 exposes the 50% level at 181.78. Alternatively a reversal below the 14.6% Fib expansion at 178.51clears the way for a challenge of the 23.6% threshold at 177.43
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.
NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
