This afternoon we saw a breakout to the downside of a bearish pennant that had been forming on the GBP/JPY 4 hour chart for the past few days.  Since the prevailing trend on the daily chart is still strongly down, I'm going to take this short and see how things go.

The horizontal dotted line in the chart below around 139.00 represents a level of support that I'll be watching carefully.  Price bounced off of this level pretty hard on 10/24/08, and tested it again on 11/13/08.  I feel comfortable shorting the downside breakout of the bearish pennant, though, because the distance to the area of support around 139.00 is more than the amount that I'll be risking initially, so by the time it gets close to support, I'll have moved my stops to breakeven.

So, without further ado...

• Short Entry:  143.073
• Initial Stoploss:  144.569