Morning Report

Yesterday, Sterling rushed to the upside against the Japanese yen breaching major resistance level of which 146.70 was the most critical –the previously breached neckline for the bearish pattern- by that the pair failed in acquiring the full targets after hitting the 50% correction level as shown above. Momentum indicators are entering overbought areas which makes us foresee an upside correction for today which is expected to take the pair to consolidate upon 146.70 before resuming the upside wave where it’s targeting next 150.00; for the short term trend to remain valid to the upside trading must prevail above 146.70.

The trading range for today is among key support at 143.45 and key resistance at 150.15.

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 selling the pair from 149.15 targeting 147.55 and stop loss above 150.40 might be appropriate