Morning Report

gbpjpy27_03_2012

The pair was able to provide a daily closing above 131.10, which supports our positive expectations to continue inside the ascending channel shown above. Stochastic is significantly positive, while SMA 50 supports the pair from below. Therefore, we expect an intraday upside move today, targeting mainly the recently recorded top of 133.46 in order to negate any bearish attempt and also to form another top near the mentioned level. Consolidation above 131.10 supports our expectations to remain valid.

The trading range for today is among the major support at 131.10 and the major resistance at 134.50.

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

Previous Report

Weekly Report

Support131.55131.10130.05129.00128.40
Resistance132.50133.00133.55134.05134.50
RecommendationBased on the charts and explanations above, our opinion is buying the pair with 4-hour closing above 132.50, targeting 133.45 and then 134.50 and stop loss below 131.55 might be appropriate