GBP/JPY Weekly Technical Report 8-12/10/2012

Over daily basis, we cannot ignore the bearish opening for today that carried the pair below 126.85 once again accompanied by bearish signals on Stochastic. Friday’s bullish candle formed a long upper shadow and that shows the possible exhaustion of the upside move. At the same time, the pair is still trading above the main ascending support provided on the chart and that prevents us from expecting a downside move for now. We prefer to stay aside for now and observe trading whether the pair can return above the Linear Regression Indicator or it will fail.

The trading range for this week is among the major support at 123.75 and the major resistance at 130.35.

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

Support    126.15    126.00    125.30    125.00    124.75
Resistance    126.85    127.20    127.75    128.40    129.05
Recommendation    Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move