The British Pound Japanese Yen.

Good evening Dynamic Traders,

Tonights chart of the GBPJPY is showing a penant formation which could be close to breaking.

The short and medium term trends are up whilst the longer is still down, and price is currently finding support around the strong figure area.

Stochastics is in a slow upward moving position but the most recent false bar is to the downside, whilst RSI is above the fifty level.

As mentioned the lower trends are up and therefore should be your friend, but be aware that the V.I. is not too far north

The conservative way to trade is the high or low breaks but if of an aggressive stance and wish to trade the penant break then beware false BOB's.

High impact news is out tomorrow on this pair with regard to the GBP and on Friday with regard to the Yen. One of these could well start the move but as already said beware a false BOB.

As always please ensure to do your own analysis before trading.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.