Morning Report

Click on the chart to see full size

gbpjpy

The inability to set a four-hour closing below 131.55 helped the pair to return to the upside. Yet today we can see that trading returned to stabilize among the 50 and 20 MA which are trading negatively with the 20 below 50, while Stochastic provided a negative crossover; therefore, we expect the pair to return to the downside today to retest the areas starting from 132.50 support and breaching this level will extend the downside move. Note that stabilizing above 133.60 might push the pair towards 135.50.

The trading range for today is among key support at 130.80 and key resistance at 136.80.

The general trend over short term basis is to the downside targeting118.80as far as areas of 150.75 areas remain intact.

Previous Report

Weekly Report

Support132.50132.10131.55131.25130.80Resistance133.60134.30134.80135.50136.20RecommendationBased on the charts and explanations above, our opinion is selling the pair around 133.60 targeting 131.55 and stop loss above 134.80 might be appropriate.