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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 178.39, 177.28, 175.77
- Resistance: 180.18, 181.64, 183.09
The British Pound may have finally secured a breakout against the Japanese Yen after prices punctured the top of a long-standing Triangle chart pattern. Near-term resistance is at 180.18, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 181.64. Alternatively, a push below the 23.6% Fib at 178.39 opens the door for a test of the 14.6% retracement at 177.28.
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 long 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
