2025/06/16 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Price is in a resistance zone on both the weekly chart and the daily chart.
Friday’s price action suggests the market wants to go higher, but I need to be careful not to end up buying the top.
On a day-trading level, I’m a buyer for now.

Scenario A
Buy after a break to the upside.
There are obvious resistance lines at 196.2 and 196.5, so I need to watch those levels after entry.
Day-trade target: 196.5

Scenario B
Go long from the current range low.
There’s a high chance price is forming a downward wave on the 15-minute level, so in that case I need to be careful not to end up countertrend trading.

As B’, I think a rise from around the current price of 195.5 is also possible.
If price builds a base of lows near the line and starts rising, I’ll buy.
Target: around 195

Scenario C
If price breaks below the range, I’ll look for selling the rally.
Target: around 194

Review

It was the B’ scenario. As expected, it didn’t drop much.
The opportunity was at ○1, entering once price came down to make a second low and firmed up support.
There were several entry points with a good risk-reward.

After that, price rose and broke above the high, so I hold, then take profit when it starts turning down (making lower highs). 47 pips

After that came a similar pattern again: the ○2 long as price rose after forming a double bottom.
Here I take profit on reaching the area around the recent high. 50 pips
It wasn’t turning down (making lower highs), so it was a spot where you could have held, but it’s late at night, so that’s tough.
For those who push through and keep watching the chart, holding up to the next line above would have made about 80 pips.