Morning Report

gbpjpy10_04_2012

The pair retested the previously breached support level of the ascending channel and then reversed to the downside as shown above on the chart. Therefore, we still expect an intraday downside movement today, affected by the completion of the double top pattern mentioned in our weekly report released yesterday. Our targets are at 128.40 and then 127.25, while consolidation below 130.05 and 130.20 is necessary for the pair to achieve those targets.

The trading range for today is among the major support at 127.25 and the major resistance at 131.15.

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

Previous Report

Weekly Report

Support129.20128.40128.00127.25126.65
Resistance130.05131.15132.00132.65133.00
RecommendationBased on the charts and explanations above, our opinion is selling the pair around 130.05, targeting 128.40 and then 127.25 and stop loss above 131.15 might be appropriate