GBP/JPY Weekly Technical Report 26-30/11/2012

See how the pair failed again to stabilize above the "C" top of the bullish Harmonic Bat pattern and also failed to breach the main resistance of the ascending channel. These circumstances make us expect a possible downside correction , especially as Stochastic entered overbought areas. The expected downside correction stands valid as far as 132.50 remains intact.

The trading range expected for this week is between the key support at 129.05 and the key resistance at 135.40 .

The short-term trend is to the downside targeting 112.00 as far as 150.00 remains intact.

Support 131.00 130.80 130.35 130.00 129.75

Resistance 131.85 132.10 132.50 133.10 134.15

Recommendation Based on the chart and explanation above, our opinion is to sell the pair below 131.85 targeting 131.00, 130.80 and 130.35 and stop-loss with four-hour closing above 132.50 for this week.