Morning report


The GBP/JPY pair failed to stay above the detected key resistance level of 150.60 as seen on the provided four-hour chart. The negative pressure of the bearish harmonic patterns has forced it to decline aggressively. Hence we believe that, the internal structure of [C] wave ofour proposedshort term Elliott count may continue on the intraday basis to the downside, supported by the candlestick formation and indicator's negative signs.

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 149.40 targeting 146.80 and stop loss above 151.25 might be appropriate.