2025/05/02 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/02 is to buy.

Yesterday’s big rally blew straight through the retracement high area on the daily chart.
The fundamentals are strong.
In the short term, momentum has already faded and price is ranging, so any entry from here will only come after confirming that price is holding firm.

Scenario A
If price keeps rising right away, I’ll buy the pullback after the breakout.
The target is around 195, but I don’t think it’s very likely to get there in one go on a day-trade timeframe.

Scenario B
A pattern where price forms a pullback around the current level or at the line below, then rises.
The target is around 194.3.

Scenario C
If price breaks below the pink line around 193, I’ll look to sell in the short term.
This is a trade aiming to catch a correction within the uptrend, so it’s a quick in-and-out.
The target is around 192–192.4.

Review

Early on, it’s a buy under Scenario B.
Reading this as a continuation of the uptrend, the long comes off the double bottom on the 15-minute chart.
However, price fails to push higher and comes back down, so I exit for now.

Ideally, you’d exit with a small loss right at ◯2 and flip to a sell.
The short comes when price breaks the low on the 5-minute chart (M5) and then pulls back.
It’s also capped neatly by the 20 MA, so the entry is based on the horizontal level and Granville’s rules.

After that, ◯3 is also a possible short.
Price shows a bounce off the horizontal level, but forms a double top and drops again.

For both ◯2 and ◯3, the green line around 192 is the day’s target, so it’s fine to take profit without hesitation once price reaches the line.
That’s 115 pips from ◯2 and 50 pips from ◯3.