GBP/JPY Technical Analysis: Sellers Overcome 179.00 Figure

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 178.44, 176.90, 175.65
• Resistance: 179.38, 180.70, 181.65

The British Pound resumed its descent against the Japanese Yen, with sellers overcoming the 179.00 figure. Near-term support is at 178.44, the 23.6%Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 176.90. Alternatively a turn above the 14.6% expansion at 179.38opens the door for a test of the 14.6% Fib retracement at 180.70.

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

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com