Morning Report

gbpjpy21_02_2012

The pair is still stable above the resistance of the ascending correctional channel and also above 38.2% Fibonacci correction at 125.75 with another daily closing, which supports our positive expectations to remain valid today. The negativity seen on momentum indicators could trigger heavy fluctuations and retesting areas around 125.75 before heading towards the targets at 127.30 and then 128.40.

The trading range for today is among the major support at 125.00 and the major resistance at 128.40.

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

Previous Report

Weekly 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