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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 178.28, 176.35, 175.01
- Resistance: 179.31, 180.97, 182.31
The British Pound looks poised to continue pushing higher against the Japanese Yen after issuing the strongest daily close in six years. Near-term resistance is at 179.31, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing 180.69-97 area marked by the 38.2% level and the September 19 high. Alternatively, a reversal back below the 14.6% Fib at 178.28 opens the door for a test of the 176.35-63 region bracketed by the September 23 low and the 38.2% Fib retracement.
The available trading range between near-term support and resistance is too narrow to justify entering a long or short position at current levels from a risk/reward perspective. With that in mind, we will remain on the sidelines until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
