GBP/JPY Price Analysis: Somehting 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

Meanwhile, from a longer-term perspective, a top-down analysis offers scenarios for both the bears and the bulls as follows:

Monthly chart

The bulls have established and are testing the trendline resistance of the wedge formation. 

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.