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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 171.32, 170.41, 169.33
- Resistance: 172.18, 173.24, 173.89
The British Pound continues to push lower against the Japanese Yen, with prices dropping to set a new monthly low. A daily close below the 50% Fibonacci expansion at 172.18 exposes the 170.41-46 area marked by the August 15 low and the 61.8% level. Alternatively, a reversal above the 38.2% Fibat 172.18 opens the door for a test of the 23.6% expansionat 173.24.
Prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines, waiting for a more compelling opportunity to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
