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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 191.32, 190.11, 188.90
- Resistance: 192.82, 195.82, 197.41
The British Pound declined against the Japanese Yen as expected after putting in a Bearish Engulfing candlestick pattern. A daily close below the 38.2% Fibonacci retracement at 191.32 exposes the 50% level at 190.11. Alternatively, a reversal above the 23.6% Fib at 192.82 clears the way for a test of the 195.24-82 area (August 6 and June 18 highs).
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.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
