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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 175.67, 174.26, 172.84
- Resistance: 177.43, 178.51, 180.26
The British Pound declined for a third consecutive day against the Japanese Yen, with prices re-testing monthly lows anew. A daily close below the 38.2%Fibonacci expansion at 175.67 exposes the 50% level at 174.26. Alternatively a reversal above the 23.6% Fib at 177.43clears the way for a challenge of the 14.6% threshold at 178.51.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish 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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
