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- GBP/JPY Technical Strategy: Flat
- Support: 173.72, 172.04, 170.41
- Resistance: 175.35, 176.43, 178.11
The British Pound pushed higher for a third consecutive day against the Japanese Yen, closing at the strongest level in two months. A daily close above the 175.07-35 area marked by the 50% Fibonacci expansion and the July 3 high exposes the 61.8% level at 176.43. Alternatively, a turn below the 38.2% Fib at 173.72 clears the way for a challenge of the 23.6% expansion at 172.04.
While entering long is tempting from a technical perspective, next week’s looming Scottish Independence referendum injects an uncomfortable degree of event risk for a long Pound position. With that in mind, we will remain flat for the time being.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com