Morning Report

gbpjpy31_01_2012

The pair breached the retest level at 120.15 and closed the session yesterday below it, which negated the effect of the suggested bullish technical pattern. Currently, the pivotal support level at 119.60 represents the suggested neckline of the bearish technical structure, which is still under formation and could be completed in case the pair settled below 120.15 and then breached the mentioned neckline, and in result this indicates that the pair settled for the current upside correction and will return to the downside movement again. In general, we remain neutral now, tracking the pair's behavior in the critical areas between the support of 119.60 and the resistance at 120.50.

The trading range for today is among the major support at 118.35 and the major resistance at 121.10.

The short-term trend is to the downside as far as 150.00 remains intact targeting 112.00.

Previous Report

Weekly Report

Support119.60119.10118.35117.95117.40
Resistance120.15120.50121.10121.80122.25
RecommendationBased on the charts and explanations above we remain neutral, awaiting more confirmations