Weekly Report

gbpjpy13_02_2012

The pair is fluctuating around 23.6% Fibonacci correction of the downside movement shown above, while it is stable within the ascending correctional channel, which lifted the pair from the bottom of 117.27. Therefore, we still expect the upside correction to extend this week, targeting mainly 124.00 and 125.65, noting that stability above 121.15 is necessary for our positive outlook to prevail.

The trading range for this week is among the major support at 121.15 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

Support122.25121.80121.15120.60120.35
Resistance122.60123.00123.80124.25124.80
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 122.25, targeting 123.80 and then 124.80 and stop loss with 4-hour closing below 121.20 might be appropriate