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GBP/JPY Technical Strategy: Flat
Support: 184.58, 181.41, 178.85
Resistance: 186.53, 187.78, 189.89
The British Pound produced its largest decline in two weeks against the Japanese Yen, dipping to probe below the 185.00 figure. Near-term support is at 184.58, the 23.6%Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 181.41. Alternatively a reversal above the 14.6% retracement at 186.53clears the way for a challenge of the December 29 high at 187.78.
While entering short is tempting from a purely technical perspective, we will tactically opt to stand aside. Thin pre-holiday liquidity conditions hint follow-through on current price action may prove lackluster and we will wait for the onset of 2015 before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com