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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 183.47, 181.84, 179.19
- Resistance: 186.11, 187.44, 189.41
The British Pound retreated against the Japanese Yen after finding resistance above the 186.00 figure. Near-term support is in the 183.47-184.31 area, marked by the 14.6% Fibonacci retracement and the November 6 high, with a break below that on a daily closing basis exposing the 23.6% level at 181.84. Alternatively, a reversal above the November 20 high at 186.11 clears the way for a challenge of the 38.2% Fib expansion at 187.44.
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
