GBP/JPY - British Pound Japanese Yen TREND - LEVEL & TRADING STRATEGY FOR THE WEEK : 21 JAN 2013

GBP/JPY

BEST BUY & SUPPORT @ 142 ACTUAL RESISTANCE & BEST SHORT LEVEL @ 143.16 A BREAK ABOVE 144.42 UPSIDE TGT IS @ 146.45/147.46 ; HOWEVER A CRACK BELOW 140.84 DOWNSIDE TGT IS @ 139.08/138.86/137.86

TREND : FIRM BEARISH

STRATEGY

IN THE PREVIOUS WEEK TRADING SESSION GBP/JPY MADE A LOW OF 140.88 & BOUNCED BACK SHARPLY TILL THE 144 MARK MAKING A HIGH OF 144.26...BUT FAILED TO TAKE OUT THE PREVIOUS WEEK HIGH 144.81 , SO THE PULL BACK FROM 140.88 TO 144.26 CAN BE CONSIDERED AS A RETRACEMENT OF 144.82...

TECHNICALLY DAILY INDICATORS SIGNALING A MILD UPMOVE BUT WHEN WE TAKE WEEKLY PATTERN... ITS INDICATING A SOUTH WARD JOURNEY WHICH IS IN ITS INITIAL STAGE SUPPORTED BY MONTHLY CHARTS - INDICATORS WHICH IS ALSO SHOWING A NEAR TERM TOP IS IN PLACE & DOWNSIDE JOURNEY HAS JUST STARTED. 

TAPE READING 

AS WE ALL KNOW GBP/JPY PAIR HAD SHOOTED TOWARDS THE HIGH 144.81 FROM THE LEVELS 127 - 128 WITHOUT ANY STRUGGLE OR TIME TAKEN  FOR CONSOLIDATING & THE PATTERN HAS LEFT A GAP @ 134.70 WHICH IS A MUST FOR THE PAIR TO FILL THE GAP BEFORE ANY NEW NEAR TERM BREAK OUT FOR HIGHER LEVELS.

TRADER'S CAN TAKE SHORT POSITIONS ONLY @ OR ABOVE 143.16 FOR TARGET 142 (WEEKLY SUPP) & 139.08.. HOWEVER RISK APPETITE TRADER'S WITH HIGH VOLUME CAN BOOK PARTIAL PROFITS @ 139.08 & WAIT FOR MULTI BAGGER  TARGET 134.70 ; ONCE 141.76 IS CRACKED AFTER TESTING 143.16  THEN WE SHALL SEE SHARP DECLINE TILL 139.88/139.08/138.86 LEVELS ; IF THE PAIR TESTS 141.76 BEFORE TESTING 143.16 THEN TRADER'S NEED TO BE CAUTIOUS & WAIT IN PATIENCE TO BUILD SHORT POSITIONS ONLY AFTER A BOUNCE TILL 143.16

LTP - 143

**APPLY REVERSAL STRATEGY IF PIVOT IS VIOLATED GIVEN IN THE WEEKLY LEVELS**

^ ^WEEKLY^ ^

^^ MONTHLY ^^