2025/06/02 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/06/02 is to sell.

June starts today.
First, the monthly chart. Nothing has changed on the monthly chart: price is held up by support, so it remains a buy.
The weekly chart failed to break above the high, so it remains a sell.
The daily chart has formed a clear double top and is coming down, but if it is going to rise again, this is the area it would rise from.
And the 4-hour and 1-hour charts are sells.
It looks like we’ll be trading with a range in mind for a while.

Scenario A
If price breaks above the blue line at 194, I’ll look to buy.
However, the pink line around 194.4 will act as resistance, so be careful.
Target is around 194.4.

Scenario B
Selling from the range high.
This is likely to be countertrend trading in the short term, so time your entry carefully.
Target is around 193.3.

Scenario C
Selling the rally after a break below the range.
Target is around 192.7, but it might be possible to aim as low as about 192.

Review

The entry point that matched the morning scenario was ○2, which falls under Scenario C.
Price rose once before ○1, but the retracement was shallow, so it was a bit hard to get in.

However, the bias was still to sell, and since price rose to near the range high and then came back down, ○1 is a valid short entry.
The read is: it tried to go up, failed, so it drops.
After entry, price stalls around the pink line, so that’s the take profit. About 30 pips.

After that, I’d like to get in again when price pulls back, but it’s right before a data release, so I pass.
Once things settle down after the data release, you can short from ○2.
However, it fails to make a new low, so I exit when it forms a double bottom. 13 pips
Since it’s late at night, it’s fine to either skip this trade, or enter and, once it drops a little, move the stop-loss level to breakeven and leave it.
There were no good opportunities during good trading hours.