Morning Report

gbpjpy07_02_2012

The pair was able to settle on SMA 50 and then rebounded to the upside to resume trading within the ascending correctional channel shown above, where we expect the pair to extend the upside move over intraday basis, targeting mainly 23.6% Fibonacci correction at 122.25 and then 124.25. The negativity seen on momentum indicators could trigger some fluctuations; however, consolidation above 120.35 is necessary for the upside move to continue.

The trading range for today is among the major support at 120.35 and the major resistance at 124.25.

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

Previous Report

Weekly Report

Support121.10120.35119.60119.10118.35
Resistance121.80122.25122.60123.00123.80
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 121.10, targeting 122.25 and then 123.80 and stop loss with 4-hour closing below 120.35 might be appropriate