Morning report

Inside the bigger bearish picture, some correctional movements are needed. Therefore the GBP/JPY has been capable of building a positive technical base that pushed it to close above 76.4% Fibonacci level. This correctional movement is awaited to re-test the broken neckline of our captured daily double top around 147.00 zones. RSI 14 alongside AROON signaled a positive sign already, supporting our expected intraday bullishness as seen on the above chart.

Trading range for today is among key support at 139.70 and key resistance at 147.30.

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

RecommendationBased on the charts and explanations above our opinion is, buying the pair from 143.50 targeting 145.90 and stop loss below 141.50 might be appropriate.