Morning report

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The GBP/JPY inclined sharply yesterday. We believe that its placing the [B] wave of our short term captured Elliott sequence. Hence we think that the [C] wave is to start on the intraday basis, supported by the negative candlestick formation on the four-hour chart while AROON up is currently trending downwards. Note that a break of 150.60 will confirm our count strongly.

Trading range for today is among key support at 145.50 and key resistance at 155.80.

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

Support150.60150.00149.35148.65147.80
Resistance151.20151.80152.45153.10153.40
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 151.20 targeting 148.65 and stop loss above 153.40 might be appropriate.