Morning Report

gbpjpy02_02_2012

The pair rebounded to the upside breaching the resistance of the sideway range shadowed above on the chart at 120.50 and then provided a daily closing above this level, which provides more signs that the positivity could extend during the coming period, where we recognize a possible ascending channel over intraday basis, which could support the metal to extend the upside correction. The negativity seen on Stochastic could trigger some fluctuations around the previously breached resistance, which turned into support now, while SMA 50 supports the pair from below. Our main targets today start at 122.25, while consolidation above 119.80 is necessary for the pair to achieve the suggested targets.

The trading range for today is among the major support at 119.80 and the major resistance at 122.25.

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

Previous Report

Weekly Report

Support120.50119.80119.10118.35117.95
Resistance121.10121.80122.25122.60123.00
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 120.50, targeting 122.25 and stop loss below 119.80 might be appropriate