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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 179.58, 177.91, 176.23
- Resistance: 181.46, 183.91, 185.01
The British Pound moved lower against the Japanese Yen as expected after completing a Head and Shoulders chart formation. A daily close below the 38.2% Fibonacci expansionat 179.58 exposes the 50% level at 177.91. Alternatively, a reversal above neckline support-turned-resistance at 181.46 opens the door for a test of the March 10 high at 183.91.
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
