2025/04/03 GBP/JPY Trade Strategy
The GBP/JPY trade strategy for 2025/04/03 is to sell.
The pair rallied strongly the previous day, but then dropped sharply toward dawn.
On the daily chart, it’s a “round trip.”
In this week’s weekly strategy I wrote that the range high was 195.9, and last night’s rally touched the daily chart’s upper limit.
Since it then dropped sharply, I think the chances of a downtrend from here are increasing.
With all that in mind, today’s strategy is:
Scenario A
The pattern where it turns upward once again.
In this case, rather than a rise on the daily chart level, I picture it as one more wave before the drop.
With that in mind, go long and take profit around 193.8.
Scenario B
A short based on the range marked by the red lines.
On this chart, the timing is good enough that it’s worth trying an entry for now.
I’m entering on the assumption that it breaks below the range, but the target is the range low around 192.4.
Scenario C
If it breaks below this line, the downward momentum may get even stronger.
In this case, I’m looking at a target around 191.4.
Review
It dropped.
As I wrote in Scenario B, the best timing was right around when I put together the morning strategy, but entering on the turn down (making lower highs) after ○1 (around 12:00 pm JST (03:00 UTC)) also works.
Even if you held on hoping for a further drop, take profit where it starts to look like a double bottom is forming. 45pips
After that, you can go long at ○2, aiming for a short-term rise.
This one broke above the high and kept rising, so hold a bit longer and wait and see, then take profit on the lower highs that followed. 45pips
When ○2 is closed, the bias is to sell, and ○3, the retracement after the drop that followed, can be shorted.
It takes some agility, but if you can see the overall flow, I think you can get in.
After that, there was no real retracement to speak of, and price reached the 181.4 target I had written in Scenario C.
In terms of room to run, I think taking profit the moment it got there is fine. 150pips
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
