GBP/JPY Weekly Technical Report 1-5/10/2012

The sideways trading caused the breach of the main ascending support, and despite that the support areas of 125.30-00 remain intact, the breach of the main support is worrisome for the continued impact of the bullish Bat Pattern. Therefore , we should remain neutral for now to see how the pair will trade around 125.00 areas , where a breach of will trigger a downside move this week, while returning above 126.30 will revive the upside move for the pair.

The trading range for this week is among the major support at 123.75  and the major resistance at 130.35.

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

Support    125.30    125.00    124.75    124.50    123.75
Resistance    125.70    126.30    126.85    127.75    128.40
Recommendation    Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move