GBP JPY is affected by Stochastic negativity 29/10/2013

The pair failed to visit the initial target level achieving 158.30 in yesterday’s trading to return to create bearish wave to settle through it around the initial support level at 156.75 as appears in the above chart, and the continuation of providing negative pressure from Stochastic increases the fears of breaking below the current support to delay the return of attempting to achieve the previously waited positive targets.

The upcoming scenario depends on the current support level, where if the price broke the support we expect that the trading will decline towards the moving average which represents the initial target for the bearish bias around 154.70, while the stability of the support allows the price to form bullish wave again to visit 160.20, therefore we recommend the neutrality in today’s trading until getting a clearer image.

Expected trading range is between 155.70 and 158.40

Expected trend for today: neutral