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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 176.43, 175.07, 173.72
- Resistance: 178.11, 180.82, 183.53
The British Pound continues to push higher against the Japanese Yen, with prices touching the highest level in six years. Near-term resistance is at 178.11, the 76.4% Fibonacci expansion, with a break above that on a daily closing basis exposing the 100% level at 180.82. Alternatively, a reversal below the 61.8% Fib at 176.43 opens the door for a test of the 175.07-35 area marked by the 50% expansion and the July 3 high.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
