Weekly Report 02/01 -06/01/ 2012

gbpjpy02_01_2012

The pair continued trading below the resistance line of the descending channel and EMA 50, while the effect of the rising wedge continued doming the movements. Thus, the bearishness is still favored during this week, mainly targeting 116.95, followed by 116.25 so long as areas of 120.35 remain intact.

The trading range for this week is among the key support at 116.25 and the key resistance at 121.15.

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

Previous Report

Support119.30119.00117.95117.40116.95
Resistance120.00120.35121.15121.75122.25
RecommendationBased on the charts and explanations above we recommend selling the pair below 119.30 targeting 117.95 and 116.95 and stop loss with four-hour closing above 120.35 may be appropriate.