Weekly Report 22-26 / 03 / 2010

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The GBP/JPY pair declined sharply, claiming that an internal correction might have been ended inside the bearish channel of the daily basis-secondary image-. The weekly Elliott count, which we explained several times before- is still in favor and an IM impulsive downside movement -fifth wave- is awaited. Thus; potential bearish wave could be witnessed during this week, supported by the negative crossover appearing on Stochastic.

The trading range for this week is among key support at 129.80 and key resistance at 140.50.

The general trend over short term basis is to the downside, targeting 126.80 as far as areas of 146.20 areas remain intact.

Previous Report

Support134.60133.60132.40131.50130.50
Resistance135.50136.20137.30137.85139.10
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 135.50 targeting 130.00 and stop loss above 139.10 might be appropriate.