GBP/JPY Technical Analysis: Pound Drops to Monthly Low

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Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 181.37, 180.25, 179.12
• Resistance: 182.76, 183.62, 185.01

The British Pound slumped to the lowest level in a month against the Japanese Yen, with sellers establishing a foothold below the 182.00 figure. A daily close below the 38.2% Fibonacci retracement at 181.37 exposes the 50% level at 180.25. Alternatively, a reversal above the intersection of channel support-turned-resistance and the 23.6% Fib at 182.76 opens the door for a test of the 14.6% retracement at 183.62.

An actionable trade setup is absent at this point, arguing against committing to a directional bias on the long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.

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Daily Chart - Created Using FXCM Marketscope

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