Morning Report

gbpjpy

The pair moved alongside yesterday's expectations, where it's currently trading positively upwards due to effects from the harmonic pattern shown above. This formation is targeting levels between 146.65 and 147.10 and it's the 127% correction of the XA leg and 261.8% correction of the BC leg consecutively for this harmonic pattern. Momentum indicators are still showing a bullish direction despite nearing overbought areas; whereas theADX is showing a bullish trend as +D trades above -D steadily. Due to these technical facts, we think the pair will head to the upside over intraday basis.Pay attention that momentum indicators are near overbought areas which might cause volatility and some bearish correctional moves.

The trading range for today is expected between the key support at 141.10 and the key resistance at 147.10.

The short term trend is to the downside as far as 150.75 remains intact with targets at 126.80.

Previous ReportWeekly Report

Support144.35143.65143.10142.75142.35
Resistance145.00145.50146.20146.65147.10
RecommendationBased on the charts and explanations above our opinion is buying the pair from 144.20 targeting 147.10 and stop loss below 143.10, might be appropriate.