2025/05/23 GBP/JPY Trade Strategy
The GBP/JPY trade strategy for 2025/05/23 is to sell.
Price is in a slightly tricky spot right now, so I think it’s fine to wait for a breakout and trade Scenario A or C.
The 193.3 line is the key level, and today’s main point is whether price can break above it or not.
If it breaks above, a continuation of the uptrend on the daily chart comes into view.
Scenario A
Buying the dip after the breakout.
Following yesterday, the chances of another bullish candle on the daily chart today are increasing.
Target is around 194.5
Scenario B
Selling from the range high.
I see this price zone as a sell, but there are also traders buying from the range low, so it’s a tricky spot.
The range isn’t very wide either, so I think it’s fine to wait and see.
If you go short, assume a break below and set the target around 192.6.
Scenario C
If price breaks below, I’ll sell.
There’s still a chance of a reversal to the upside today, so I can’t chase it too far.
I’m targeting around 192.6.
Review
If you were trading aggressively, you could sell from circle ① under Scenario B.
However, this is a price zone where a bounce on the 1-hour chart (H1) is a concern, so it’s a spot where you’d be torn between taking profit early or holding for the drop.
If you took profit, it would be around 15 pips.
If you held, the price doesn’t fully drop and instead forms a double bottom and rises, at which point you’d exit. Around 23 pips.
After that, if you trade by the textbook, you could go long from circle ②.
But the green line at 193.3, which acts as resistance on the 4-hour chart (H4), is right above, so it’s a spot where I think there’s no need to force it.
If you did enter, you’d have to choose between quickly taking profit at the green line or holding in hopes of a further rise, but if you took profit it would only be around 17 pips, so in that sense too, it’s a spot to deliberately stay out.
In reality, the price rises further after entry, but then a sharp drop occurs due to some fundamental factor, so it ends in a breakeven or small-profit exit.
It already looked like a difficult day as of the morning, so on days like this, it’s fine to just sit out.
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.
