Weekly Report

gbpjpy23_04_2012

The pair closed the session on Friday above 131.10, which is a positive sign that supports the continuity of the upside move during the coming period. The pair reversed now to decline affected by the negativity of Stochastic and also due to the resistance of the ascending channel that forms now a strong support after it was breached. In general, we suggest an upside move this week, noting that two conditions are required for the suggested incline; the first is breaching the level of 132.05, while the second is consolidation above 130.05.

The trading range for this week is among the major support at 130.05 and the major resistance at 134.05.

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

Previous Report

Support131.10130.05129.20128.40128.00
Resistance132.05132.65133.00133.45134.05
RecommendationBased on the charts and explanations above, our opinion is buying the pair with 4-hour closing 132.05.05, targeting 133.00 and then 134.00 and stop loss with 4-hour closing below 131.10 might be appropriate