GBP/JPY Price Analysis: Something for both the bulls and the bears
- GBP/JPY has gapped lower in the open pertaining to Brexit risk.
- There is a meanwhile day trade 1:2 risk to reward set-up following the bearish GBP news and price action to start the week.
Brexit: trade talks on knife-edge, sterling vulnerable to start the week
In the following flow of analysis, the short term outlook is bearish. However, on the longer-term charts, the price is above the bullish structure.
15-min chart
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Update: Target achieved
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A combination of fundamentals and technical analysis for a 1:2 risk to reward.
Meanwhile, from a longer-term perspective, a top-down analysis offers scenarios for both the bears and the bulls as follows:
Monthly chart
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The bulls have established and are testing the trendline resistance of the wedge formation.
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The daily channel support and combination of structures offer a bullish bias while above the zone which happens to have a confluence of the 61.8% Fib.
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Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
