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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 192.62, 191.32, 190.11
- Resistance: 194.86, 195.89, 197.10
The British Pound continues to oscillate in a choppy range below the 195.00 figure against the Japanese Yen. Near-term trend line resistance is at 194.86, with a break above that on a daily closing basis exposing the 195.82-89 area (38.2% Fibonacci expansion, June 18 high). Alternatively, a move below trend line support at 192.62clears the way for a test of the 38.2% Fib retracement at 191.32.
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 short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
