Morning report


After being limited below 61.8% Fibonacci level, the GBP/JPY pair collapsed proving the strong bearish pressure obtained form the bigger A-B-C -corrective scenario- of the captured short term cycle on the four-hour interval. The candlestick formation shows that the declines are to continue over the intraday basis. AROON supports the negative scenario obviously.

Trading range for today is among key support at 143.90 and key resistance at 154.60.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 149.35 targeting 146.80 and stop loss above 151.40 might be appropriate.