GBP/JPY Weekly Technical Report 21-25/1/2013

The pair approached upside channel`s support (shown on the graph.) The support at 140.45 is this week`s interval; stability above it could trigger the upside rebound and a break below it could set up a negative technical pattern that would bring a sharp downside correction.

The trading range expected for this week is between the key support at 139.30  and the key resistance at  144.65.

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

Support 142.15 141.80 141.30 140.80 140.45

Resistance 142.60 143.20 144.25 144.65 145.00

Recommendation Based on the graph and explanation above, our opinion is buying the pair around 142.15 targeting 143.20, 144.25 and 144.65 and stop-loss with four-hour closing below 140.45 is optimal for this week.