Morning Report

gbpjpy28_03_2012

The pair found strong resistance for the second time near the previously recorded top at 133.45, where we mentioned in our previous report that this level might remain intact and according forming a double top pattern that could trigger an intraday downside movement. The pattern's proposed neckline is at 130.05. Therefore, our intraday upside move remains valid as long as the pair is trading within the current ascending channel and due to the positivity seen on Stochastic, yet a breach of 103.05 will affect our outlook significantly.

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