2025/05/09 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/09 is to buy.

Yesterday’s big rally took price straight up to a key level on the daily chart.
On the day after a move like this, a common pattern is for the market to range and drift around all day.
It’s the end of the week, too.
Technically, though, it’s a buy.
For day trading, today is about looking for buys while watching out for resistance at the daily high.

Scenario A
If price breaks higher, there’s no notable resistance zone above, so it may head toward the weekly high around 195.7.
However, there’s also the pattern where it turns into a false breakout with an upper wick on the daily chart and then drops.
I need to be careful with the entry and watch how price develops afterward.

Scenario B
A pattern where price makes a small pullback and then rises again.
I feel this one is more natural.
If price starts bouncing in the price zone around 192.6, I’ll look to go long.
This assumes an eventual break higher, but the first target is the recent high around 193.3.

Scenario C
If price breaks below around 192.6, I’ll treat it as a bearish shift on the day-trading timeframe.
After the break below, I’ll wait for a retracement and look to go short.
The target is around 192

Review

Early on, the price drifted steadily lower.
The first idea was a short at circle ① under Scenario C, but I’d pass on it given the bounce off the pink S/R line and the strength of that bounce.
If you did enter, you’d exit once the price failed to make a new low at the pink line. That would still have netted around 15 pips.
After that, wait and see.

Next is a long from the pullback after the short-term bullish shift at circle ②.
The price did break below once, but I see this as Scenario B.
Taking profit on reaching the 193.3 line is fine. 65 pips