Weekly Report

gbpjpy02_04_2012

The pair rebounded to the upside sharply on Friday to settle above 61.8% Fibonacci correction. We recognize a sideway range that controls the pair's movement between 133.45 and 130.05. In general, consolidation within the ascending channel in addition to the support provided by SMA 50 drive us to expect an upside move this week. Our suggested outlook depends on a breach of 133.45 and stability above it, while the level of 130.05 must remain intact. Our targets are at 131.10 and then 136.00.

The trading range for this week is among the major support at 131.10 and the major resistance at 136.00.

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

Previous Report

Support132.65132.00131.10130.05129.25
Resistance133.00133.45134.05134.50135.10
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 133.45, targeting 134.50 and then 136.00 and stop loss below 132.65 might be appropriate