GBP/JPY Price Analysis: A shakeout of longs could be imminent

• GBP/JPY building up the base for a significant downside breakout.
• Bearish wedge formation is potentially at an extreme and the market could be due for a shakeout of longs. 

As per the prior analysis, GBP/JPY bulls are on the move early doors, eyes on central bank divergences, GBP/JPY moved in on the liquidity pool target and subsequently sold off aggressively. 

GBP/JPY prior analysis

GBP/JPY live market

The price is now back into the old wedge formation following a spike through resistance in what could be termed as a fake-out that simply went to grab more liquidity from an area that was previously marked as a target for the open. 

At this juncture, there is a bias to the downside and a break of 154.40 opens the risk of a test to 154 the figure as the last defence of a potentially significant downside breakout of the bearish wedge formaton.