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- GBP/JPY Technical Strategy: Flat
- Support: 180.96, 178.80, 177.05
- Resistance: 182.30, 184.46, 185.89
The British Pound extended downward against the Japanese Yen as expected following the formation of a bearish Evening Star candlestick pattern. Near-term support is at 180.96, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 178.80. Alternatively, a reversal above the 14.6% Fib at 182.30 clears the way for a challenge of the May 1 high at 184.46.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com