Weekly Report

gbpjpy19_03_2012

The pair continues the upside move, breaching the barrier of 132.00 and providing a daily and a weekly closing above this level. This indicates that the upside move might continue this week, targeting mainly 76.4% Fibonacci correction at 134.50. The negativity seen on momentum indicators might trigger heavy fluctuations and downside corrections, supported by trading near the resistance of the ascending channel. Consolidation above 131.10 is necessary for our expectations to prevail.

The trading range for this week is among the major support at 130.00 and the major resistance at 135.05.

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

Previous Report

Support131.75131.10130.10129.00128.40
Resistance132.30133.00134.05134.45135.10
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 131.10, targeting 133.00 and 134.50 and stop loss below 130.10 might be appropriate