Weekly Report

gbpjpy20_02_2012

The pair continued the upside move, breaching the resistance of the ascending correctional channel and 38.2% Fibonacci correction of the downside movement, which started at 140.00 and ended at 116.80, indicating that the upside move could extend further this week, where our next target is at 50% Fibonacci correction around 128.40. The pair could retest areas around 125.75 affected by the negativity seen on momentum indicators before reaching the suggested targets. Consolidation above 125.75 is required for our expectations to prevail.

The trading range for this week is among the major support at 124.60 and the major resistance at 130.00.

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

Previous Report

Support125.75125.00124.60123.85123.20
Resistance126.55127.00127.35128.40129.50
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 125.75, targeting 127.30 and then 128.40 and stop loss with 4-hour closing below 124.60 might be appropriate this week