Morning report

Sterling versus Japanese yen has collapsed downwards, respecting our daily double top formation scenario. Now the door is opened to reach the detected technical target of the pattern around 137.50 first, followed by 134.95 over the short term basis and any upside movements should be seen as a correction. AROON shows the strength of the downtrend pressuresupported by thebearish candlestick formation. A break of 139.70 -today's recorded low- will help the pair to reach the mentioned target. Hence we keep our overview to the downside on the intraday bass.

Trading range for today is among key support at 134.95 and key resistance at 147.30.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

Support140.80139.70139.25138.40137.50
Resistance142.00142.65143.20143.80144.55
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 141.80 targeting 139.25 and stop loss above 143.90 might be appropriate.