Morning Report

gbpjpy04_01_2012

The pair has touched the resistance of the bearish channel at 120.20 where it declined once more stabilizing inside our channel. Stochastic continues giving off positive signs that may bring some kind of positivity. But, we depend on the daily closing below the aforementioned levels to keep our bearish predictionsunchanged targeting 117.95 followed by 116.25; noting that, a break below 119.30 will accelerate the bearish wave.

The trading range for the day is expected among the key support at 116.95 and the key resistance at 120.30.

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

Previous Report

Weekly Report

Support119.30119.00117.95117.40116.95
Resistance120.20121.15121.75122.25122.60
RecommendationBased on the charts and explanations above we recommend selling the pair with a four-hour closing below 119.30 targeting 117.95 and 116.95 and stop loss with four-hour closing above 120.20 may be appropriate.