Morning Report

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The GBP/JPY pair has collapsed downwards, supporting the negative overview over short term basis, as we discussed several times before. Now, the positive divergence on RSI 14 revives that the internal second wave is in progress for the time being as we know that our defined [C] wave should consist of 5 waves. Having said so, the intraday basis is expected to be to the upside, targeting 150.30 zones, where the third wave should start to the downside. The candlestick formation supports our temorarily positive overview.

The trading range for today is among key support at 143.50 and key resistance at 153.40.

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

Support147.60146.80146.00145.50145.00
Resistance148.70149.35150.00150.30151.25
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 147.70 targeting 150.30 and stop loss below 145.40 might be appropriate