2025/05/28 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/28 is to buy.

Until the spike around 10 am JST (01:00 UTC), I was looking to sell.
However, given the 10 am JST (01:00 UTC) spike and the fact that both the 4-hour and 1-hour charts are rising, I’d say buyers have gained a slight edge.
The situation could still be read either way, so it’s better to wait and see a little longer while price is inside the range.
Basically, it’s better to make a decision after price breaks out of the range, either up or down.

Scenario A
If price forms another upward wave, I’ll buy.
Target: around 195.8

Scenario B
If the downside holds firm, I’d like to buy.
Price may bounce from around the pink line at 194.7, just above it, without dropping to the range low at 194.5, so if I look for an entry, I’ll monitor the price action on the lower timeframe.

Scenario C
If price breaks below, I’ll look to sell the rally.
This is a short aiming to catch the pullback forming on the 4-hour chart.
Target: around 194

Review

Without the up-and-down swing around 10 am JST (01:00 UTC), I was looking to sell, so I could have ridden it down to the range low, but that single candle made the direction unclear.

In the end, it played out as Scenario B, buying from the range low.
It looked like it might break lower a few times, but it held, and I bought at circle ① after it made higher highs and higher lows.

Since the market context was unclear, I took profit at the range high. 34 pips