GBP/JPY Weekly Technical Report 15-19/10/2012

 The Linear Regression Indicators are attempting to crossover positive and the RSI is stable above 50. On the other hand, the pair is stable below the ascending trend line and Stochastic is trading below 50 and this supports the formation of the Double Top pattern with the second peak. The classic conflict is forcing us to stay neutral for now and the upside move will be confirmed with the breach of 126.85 and the downside move requires the breach of 125.30 and till the pair exits the sideways move we prefer to stay aside.

The trading range for this week is among the major support at 123.25 and the major resistance at 129.05.

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

Support    125.80    125.30    125.00    124.75    124.05
Resistance    126.15    126.85    127.10    127.75    128.40
Recommendation    Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move