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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 181.92, 180.46, 178.07
- Resistance: 183.22, 184.53, 186.65
The British Pound may have set a top against the Japanese Yen after prices put in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 171.92, the 14.6% Fibonacci retracement, with a break below that exposing the 23.6% level at 180.46. Alternatively, a reversal above the 14.6% Fib expansion at 183.22 clears the way for a challenge of the 23.6% threshold at 184.53.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
