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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 169.33, 167.72, 166.00
- Resistance: 170.50, 171.36, 172.21
The British Pound remains under pressure, with prices on pace to issue the lowest daily close in five months against the Japanese Yen. Near-term support is in the 169.33-44 area, marked by the September 8 low and the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 167.72. Alternatively, a reversal back above the 170.41-46 zone (August 15 low, 61.8% Fib) clears the way for a challenge of the 50% expansion at 171.36.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now until a more attractive opportunity presents itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com