Morning Report

gbpjpy21_03_2012

The pair settled near the resistance of the ascending channel at 133.40, while momentum indicators continue to be negative, pressuring the pair and deepening the current upside correction. In general, we expect the upside correction to extend today, targeting the level of 134.50 and then 135.10, noting that consolidation above 131.75 is necessary for our expectations to prevail.

The trading range for today is among the major support at 131.10 and the major resistance at 135.10.

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

Previous Report

Weekly Report

Support131.75131.10130.10129.00128.40
Resistance133.40134.05134.50135.10136.00
Recommendation Based on the charts and explanations above, our opinion is buying the pair around 131.75, targeting 133.00 and 134.50 and stop loss below 131.10 might be appropriate