• GBP/JPY has been creeping higher, but maybe into he hands of the bears?
• The UK CPI data will be key for the day ahead, but technically, the bulls are in control. 

GBP/JPY was an inside day on Tuesday and coupled with the bullish megaphone, this could be regarded as a highly bullish scenario for the day ahead as the hybrid would be thought to signal a strong continuation pattern. Therefore, if trading a breakout from the pattern, the highest probability trades are ones where the overall market direction aligns with the direction into and out of the two-day pattern:

GBP/JPY H1 chart

The price will be running into the UK inflation today, so volatility should be high on traders' agendas for this pair on Wednesday. If there is to be a sell-off, depending don't he data, Day 1 level 1 and Day 2 level 1,2 and 3 longs could be seen as targets by the bears:

The greyed areas represent long positioning in the market that could be vulnerable to sellers in the day ahead.

GBP/JPY H4 chart

There is a huge build-up in longs in the spot market. A break of the trendline could be significant for the remainder of the week and trigger an exodus of the bulls.