Morning report

The GBP/JPY pair is trapped in a narrow range, preparing for the expected bullish action, which is targeting the broken neckline of our captured daily double top around 147.00 zones. A new sign appeared on AROON up which is positively attacking the value of 30.00 may help the pair to activate the bullish correctional wave on the intraday basis. Moreover, the RSI 14 -currently valued at 25.00- is in a real need for relief.

Trading range for today is among key support at 137.60 and key resistance at 145.50.

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 140.80 targeting 143.20 and stop loss below 138.70 might be appropriate.