Morning Report

gbpjpy05_01_2012

The pair continuedmoving withina very tight range since yesterday, stabilizing below the sloping resistance of the descending channel at 120.15. Thus, we hold onto our bearish anticipations over intraday basiswhile a sustained breakout below 119.30 will activate this bearishness. Finally, areas of 120.15 should hold with a daily closing below it to keep this scenario valid.

The trading range for the day is expected among the key support at 116.95 and the key resistance at 121.35.

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
Resistance120.15120.65121.35121.75122.25
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 120.15 may be appropriate.