Weekly Report(23-27 March)

gbpjpy23_01_2012

Trading settles above the resistance of the breached descending channel shown on image, therefore, a bullish move is probable within the coming days as a bullish correction. Negativity on stochastic may push the pair to retest the breached resistance which turns into support at 118.90 before heading towards acquiring the upside targets starting from 122.25. Breaching 118.90 with daily closing will put the pair within the main bearish trend again.

The trading range for the week is expected among the key support at 117.95 and the key resistance at 125.65.

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

Support118.90117.95117.40116.80116.25
Resistance120.30120.95121.35121.75122.25
RecommendationBased on the charts and explanations above we recommend buying the pair around 131.00 targeting 132.70 and stop loss below 130.00 may be appropriate