Morning Report

gbpjpy29_02_2012

The pair is still limited between 50% and 38.2% Fibonacci correction at 125.65 and 128.40 respectively. We expect the positive effect of the double bottom pattern, which was completed with the breach of 125.65, is still valid, but the negativity seen on momentum indicators prevents the pair from extending the upside move. In general, we expect an intraday short-term upside move, supported by the ascending minor channel shown above on the minor image, while the pair should breach and settle above 128.40 in order to extend the upside move towards 130.80 initially. A breach of 126.65 could postpone reaching our bullish targets.

The trading range for today is among the major support at 125.65 and the major resistance at 130.80.

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

Previous Report

Weekly Report

Support127.65127.25126.65125.65125.00
Resistance128.40129.50130.00130.80131.10
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 128.40, targeting 130.80 and stop loss with 4-hour closing below 127.65 might be appropriate