2025/05/07 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/07 is to buy.

It looks like the 4-hour chart (H4) may finally be forming a pullback.
On the 15-minute chart (M15), I think a bullish bias is fine.
However, the 1-hour chart (H1) is still borderline for calling a bullish shift, so price may keep wandering around in the range a bit longer.

Scenario A
If price breaks above the current range high, the bias is fully bullish.
I want to go after this one aggressively.
The target is around 192, but depending on the momentum, I may be able to hold and aim for around 193.

Scenario B
Aim for a reversal after price drops to the line around 190.7.
The 15-minute chart (M15) is currently turning down (making lower highs), so I’ll wait for the timing when that move reverses.
The target is again around 192.

Scenario C
If price breaks below around 190.7, I’ll consider the possibility that the decline continues again.
I’ll go for selling the rally, targeting around 190.

Review

The flow was to the buy side, but it didn’t extend as much as I expected.

Buy at circle ① on Scenario A
A long after price stopped falling right at the line.
Exit when it stalls at the next line up and starts coming down. 40 pips

Buy at circle ②.
You can buy again on the pullback that follows.
Entry after seeing it turning up (making higher lows) on the 5-minute chart (M5).
After that it breaks above the line, so hold, then take profit when it forms a double top and starts dropping. 39 pips

It didn’t make a clean, sharp run, but it was an easy market to trade.