Morning Report

gbpjpy22_02_2012

The pair found strong support around the retest level of 125.75 and then rebounded to the upside, where the pair started the session positively despite the negativity seen on momentum indicators over daily basis. In general, we expect the intraday upside move to continue today, targeting mainly 127.30 and then 128.40, noting that a breach of 125.75 means that the pair will return inside the ascending correctional channel and could trigger a downside movement over intraday basis.

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