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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 181.79, 180.84, 178.76
- Resistance: 183.37, 184.27, 186.34
The British Pound are testing pivotal resistance against the Japanese Yen as prices challenge the bounds of the down trend played out since early December. A daily close above trend line resistance at 183.37 exposes the 61.8% Fibonacci retracement at 184.27. Alternatively, a turn below resistance-turned-support at 181.79 opens the door for a test of the 23.6% level at 180.84.
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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
