Morning Report

gbpjpy15_02_2012

The pair continues to incline, approaching the primary targets around 123.80, while Stochastic is within overbought areas, which could trigger some fluctuations and downside correction. In general, the pair is still stable within the ascending correctional channel shown above, supported by SMA 50, which drives us to expect the intraday upside move to extend today, targeting 124.80 and 125.65, noting that a breach of 123.00 could postpone achieving our suggested targets.

The trading range for today is among the major support at 122.25 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

Support123.00122.60122.25121.50121.35
Resistance123.80124.25124.80125.65126.00
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 123.00, targeting 123.80 and then 124.80 and stop loss with 4-hour closing below 122.25 might be appropriate