Great British Pound vs. Japanese Yen (2011-02-21)

By @ibtimes on

Midday Report

The pair didn't show any big move since morning, while approaching the lower line -support line- of the rising wedge. This slight downside action increases the chances for the anticipated correction, which is based on the bigger picture of the weekly chart, where the resistance line of the trading range becomes very close. In the interim, Stochastic shows an obvious overbought sign and therefore, we hold onto our negative predications for the rest of the day.

The trading range for today is among key support at 132.00 and key resistance at 136.80.

The general trend over short term basis is to the downside targeting 118.80 as far as areas of 150.75 areas remain intact.

Weekly Report

Support134.25133.60133.15132.50132.00Resistance135.50135.80136.20136.80137.30RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 134.50 targeting 131.65 and stop loss above 136.50 might be appropriate.

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