GBP/JPY Weekly Technical Report 3-7/12/2012

The pair touched the ascending resistance and dropped, and is now attempting to break the 131.85 level that represents the "C" top of the bullish Harmonic Bat Pattern. Stability below that level could trigger a downside correction. Momentum indicators are currently leaning negative showing that the pair could lose bullish strength. Despite the fact that general bullishness isn`t complete yet, we believe the pair now requires a downside correction .

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 131.85 131.00 130.80 130.35 129.75

Resistance 132.35 132.85 133.10 133.55 134.15

Recommendation Based on the chart and explanation above, our opinion is to selling the pair with four-hour closing below 131.85 targeting 131.00, 130.80 and 135.35 and stop-loss with four-hour closing above 132.50 for this week