Great British Pound vs. Japanese Yen (2010-02-12)

The pairis trapped below the key resistance level of 141.50, seen on the secondary image for the four-hour interval, which shows that a negative divergence has been formed on the Stochastic. Thereby, potential downsidemovements might be seen on the intraday basis, supported by the previous discussed Elliott count of the weekly charts. Areas of 139.90 should be breached to confirm our negative scenario.

The trading range for the week is among key support at 135.50 and key resistance at 144.15.

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

Weekly ReportPrevious Report

Support140.00139.25138.60137.90137.25Resistance141.00141.50142.25142.75143.45RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 139.90 targeting 137.60 and stop loss above 141.60 might be appropriate.