Morning report


The GBP/JPY pair is still moving under the pressure of our suggested [C] wave for the short term Elliott sequence. Hence the upside movements which occurs from time to time are to be seen as normal correction actions. Stochastic succeeded to form a bearish harmonic formation as seen on the provided four-hour chart that supports the possiblenegative outlook over the intraday basis

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.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 148.60 targeting 146.30 and stop loss above 150.60 might be appropriate.