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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 180.69, 177.70, 175.84
- Resistance: 182.55, 183.69, 185.54
The British Pound paused to digest gains against the Japanese Yen after hitting a four-year high in the wake of last week’s surprise BOJ stimulus expansion. A daily close above the 114.6% Fibonacci extensionat 182.55 exposes the 123.6% level at 183.69. Alternatively, a turn below resistance-turned-support at 180.69, the September 19 high, opens the door for a test of the 76.4% Fib retracement at 177.70
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 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
