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- GBP/JPY Technical Strategy: Flat
- Support: 182.24, 180.96, 178.80
- Resistance: 184.03, 186.20, 189.70
The British Pound may be topping below the 185.00 figure against the Japanese Yen anew after forming a bearish Evening Star candlestick pattern. A daily close below rising trend line support at 182.24 exposes the 23.6% Fibonacci expansion at 180.96. Alternatively, a reversal above the 61.8% Fib retracement at 184.03 opens the door for a test of the 76.4% threshold at 186.20.
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