GBP/JPY Trade Strategy for 2025/03/24

Here is my GBP/JPY trade strategy for 2025/03/24.
The pair has been pushing higher strongly since the morning, and since it has broken above a key level, a bullish bias looks fine for today.

Scenario A
The pattern where price keeps rising without forming a pullback, though I think this is fairly unlikely.
In this case, I’ll watch whether a pullback forms around 193.7 before entering.
The initial target is around 194.

Scenario B
The pattern where price fails to break above 193.7 and forms a pullback first.
This feels like the most likely scenario, and in that case 193.3 is a promising pullback candidate.
However, the area down to around 193 yen, slightly below the pink line beneath it, may act as a support zone.
In Scenario B, if price drops all the way into this support zone, it might not bounce right away?

Scenario C
The pattern where price falls further.
In this case, I’ll wait for a retracement and then look to go short, aiming to catch the drop down to around 192.5.

Review

This morning’s trade strategy played out as Scenario B.
There were two possible entry points, both marked ○1.
The first was where price gradually made higher lows near the line, forming a saucer bottom.
The second was the pullback to support/resistance (S/R) after price briefly made a new short-term high.

Taking profit at the line around 194 yen, which was the target, is fine. 50 pips
You could also hold for a further rise, but since price had been rejected at the line many times, it’s better to close the position before the data release.

After that, price rose sharply on the data release, so if you had held, you’d have made over 100 pips.
But if it had dropped instead, you’d have ended up with zero profit or a loss, so it’s a gamble.