2025/07/02 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

My bias is to buy, but the 1-hour is making an adverse move against the 4-hour, so price is in a somewhat tricky spot.
I think it’s fine to wait until it breaks out either up or down before getting in.

Scenario A
The level to watch is the yellow line at 197.6; buy once price breaks above it.
That said, the 4-hour rally high is unclear, so I have a feeling this could be a hard one to trade.
Target is 198

Scenario B
Buy from around the current range low at 197.
If you take this trade, do it with the understanding that it’s a relatively narrow range, or you’ll get hurt.
Target is 197.6; if it breaks above, same as Scenario A.

Scenario C
I see the range low at 197, but I’ll only start selling once price breaks below the blue line at 196.8 underneath it.
Target is the recent low at 196.3, but assuming it breaks lower, I’d also like to aim for 195.9.

Review

No trade.
If you were buying under Scenario B, you could have bought at the red circle.
You could either take profit where it stalled at the round number, or take profit after seeing it turn down (make lower highs) afterward.
That would have been about 15–20 pips.