GBP/JPY Weekly Technical Report 18-22/2/2013

GBP/JPY dropped to a low at 142.78 last week, and before touching 142.60 it rebounded upwards back into the rising channel, as seen on the graph. Stochastic reflects a bullish bias on momentum however, the pair trades below Linear Regression Indicators as to this moment. Relative Strength Index shows weakness in the uptrend – the event that requires trading back within the aforesaid channel. Hereon, we prefer to stand aside in our Weekly Report, searching for signs of a specific direction.

The trading range expected for this week is between the key support at 142.60 and the key resistance at 149.60

The short-term trend is downside targeting 112.00 if 150.00 remains intact