GBP/JPY Weekly Technical Report 29/10-2/11/2012

 The pair touched the first extended target of the bullish harmonic Bat pattern found at 129.05, and it is trading below it. There is a negative candle formed below this level, while the stochastic tends to become negative. These circumstances oppose our positive leaner regression indicators and the stability above the 50 line of the RSI. Thereby we will remain neutral in our weekly report , to see if the Bat pattern will continue to affect the price, or if the price settled with only extending the first target.

The trading range for this week is among the major support at 125.70 and the major resistance at 131.85.

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

Support    127.80    127.10    126.85    126.15    125.70
Resistance    129.05    129.75    130.35    130.85    131.10
Recommendation    Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move this week.