2025/07/07 GBP/JPY Trade Strategy
Today's GBP/JPY call: Buy.
In the short term it’s a sell setup, but the 4-hour chart says buy and the 1-hour chart is unclear.
It’ll be easier to read once price breaks out toward either A or C.
Scenario A
A buy, assuming price heads for the daily chart high once more.
I’m a bit wary of the yellow line just above, around 197.6.
Target: 198
Scenario B
Right now it’s a sell in the short term, but if price keeps turning up (making higher lows) from the recent low, I think buying would be okay.
In that case, I see the pullback candidates as the area between the 197 round number and the blue line at the range low, 196.8.
If price reverses upward around that price zone, I’ll look for a long.
Target: 198
Scenario C
If price breaks below the blue line at the range low, it’s a sell for now.
Target: 196
Review
It played out as Scenario A.
The first opportunity was a long at the left red circle, the pullback after the break above the range high.
Since this was buying the dip right after price had touched the yellow line acting as resistance, I stayed cautious and took a wait-and-see stance, but price touched it again and came back down, so I exited for now. 7pips
After that, price briefly broke below the low, but at that point there was nothing at all pointing to a sell and buying was the only option, so I waited and watched.
The second red circle is where price rose while turning up (making higher lows), and I could judge that it was heading for the highs again.
It was basically an entry off a small pullback on the lower timeframe.
After that, price broke through the target and kept climbing without printing a bearish candle, so it was a day of simply holding.
I took profit when price reached the green line at 199, the daily chart high. 152pips
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.
