GBP/JPY Weekly Technical Report 14-18/1/2013

The pair surged upside taking advantage of stability above Linear Regression Indicators and the ascending channel. At the kickstart of this week, we see it trading near the uptrend`s main resistance. Although overall bullishness stands valid, an extending uptrend requires a breach to resistance at 145.75; it is paramount to terminate overbought signals showing on momentum indicators. Therefore, we commit ourselves to neutrality in this weekly report in anticipation of clearer signs for direction.

The trading range expected for this week is between the key support at 140.00 and the key resistance at  148.25.

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

Support 144.00 143.50 143.00 142.80 142.15

Resistance 144.80 145.75 145.95 146.35 147.40

Recommendation Based on the graph and explanation, our opinion is to remain neutral in our weekly report.