Morning Report

gbpjpy19_04_2012

The pair closed the session yesterday above the level of 130.05, which stopped the negative effect of the double top pattern and indicated that the pair settled for the achieved bearish targets. Stochastic continues the upside move, while SMA 50 supports the pair from below. Therefore, we expect an upside move today, targeting mainly the level of 131.70 to confirm the return of the bullish correction. A breach of 129.55 weakens our bullish scenario.

The trading range for today is among the major support at 128.40 and the major resistance at 133.00.

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

Previous Report

Weekly Report

Support130.05129.55129.20128.40128.00
Resistance131.10131.70132.65133.00133.45
RecommendationBased on the charts and explanations above, our opinion is buying the pair around 130.05, targeting 131.70 and then 133.00 and stop loss with 4-hour closing below 129.55 might be appropriate