2025/03/21 GBP/JPY Trade Strategy

The key point for the 2025/03/21 GBP/JPY trade strategy is whether the daily chart continues higher or goes into an even deeper pullback.
On the morning chart, I’m watching whether price rises above 193 or breaks below the range and turns lower.

Scenario A
If price rises, look for a long from support/resistance (S/R).
There is resistance around 193.3, so be careful there.
The target is around 194, but if you see the daily uptrend continuing, holding a bit longer is fine too.

Scenario B
The short-term bias is to buy, so go long from around the S/R at the range low.
However, price could whipsaw up and down in this price zone, so I don’t think you need to force a trade.

Scenario C
Look for a short on a bearish shift.
In this case, I’d like to target around 191.7.
However, be careful around 192, the recent low. If price doesn’t break below it, just take profit.

Review

Price rose out of the morning range, and the pullback that followed was a long entry under Scenario A at ○1.
You buy using the pink 193 yen line as the reference, and it’s fine to take profit around where price fails to break the 193.3 resistance and starts to drop. 30 pips

After that, switch your bias to selling around the point where price broke below the pink 193 yen line.
On the retracement that followed, ○2, with a good risk-reward, is an entry point.
If it feels a bit like countertrend trading and is hard to enter, ○3 works too.
That’s a short from a small retracement after the drop had become likely.

The pink 192 yen line I mentioned in Scenario C of the morning trade strategy looked likely to act as resistance, and since it was late at night and a Friday, taking profit near the line is OK. 100–130 pips