Morning Report

gbpjpy

The pair neared yesterday's suggested target, where negative signs are still clearly appearing through the image above; the ADX indicator is showing a negative crossover, while trading below the MA 20 that adds negativity to the pair's trades. We currently require the breach of 138.40 to pave the way for more bearish movement in overall, according to the Elliot wave scenario; pointing to a bearish intraday direction, currently entering the fifth bearish wave within the impulsive wave scenario shown above. The RSI indicator stabilized below 50 points and therefore supporting our expectations; whereas the stochastic is adding negative signs on the trend, despite of oversold signs.

The trading range for today could be between support 137.20 and the key resistance at 143.65.

The general trend is to the downside as far as 167.40 remains intact with targets at 116.00.

Support139.05138.70138.40137.80137.20
Resistance140.00140.90141.50142.25142.60
RecommendationBased on the charts and explanations above our opinion is selling the pair from 140.00 targeting 137.20 and stop loss above 141.50, might be appropriate.