Morning Report

gbpjpy16_12_2011

The pair is still stable below the breached support for the sideways range shown above at 121.00 and we can see the fluctuations around those areas due to the positivity on Stochastic which delays the awaited bearish targets. In general, we will depend on the this breach and stability below the main descending channel's resistance and the MA 50 to expect the pair to resume the intraday downside move expected for today targeting areas at 119.30 then 117.95 while breaching areas of 121.00-60 will negate the suggested bearish scenario.

The trading range for today is expected among the key support at 117.95 and the key resistance at 122.25.

The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.

Previous Report

Weekly Report

Support120.00119.30119.00117.95117.40
Resistance121.00121.60122.25122.60123.15
RecommendationBased on the charts and explanations above our opinion is selling the pair around 121.00 targeting 119.30 and stop loss above 122.25 might be appropriate