Morning Report

gbpjpy09_02_2012

The pair reversed to the downside yesterday, affected by the negativity seen on Stochastic which is positive over the 4-hour basis, while SMA 50 provides strong support from below. In general, trading within the ascending correctional channel supports us to expect an intraday upside move today, noting that our expectations depend on trading above 122.25 and consolidation above 120.75.

The trading range for today is among the major support at 121.20 and the major resistance at 125.65.

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

Previous Report

Weekly Report

Support121.80121.20120.60120.35119.60
Resistance122.25122.60123.00123.80124.25
RecommendationBased on the charts and explanations above, our opinion is buying the pair with hourly closing above 122.25, targeting 123.80 and then 124.80 and stop loss with 4-hour closing below 121.20 might be appropriate