2025/07/31 GBP/JPY Trade Strategy
Today's GBP/JPY call: Sell.
I’m expecting price to move within the same range as yesterday.
It’s been ranging for days now, with the upside capped quite a bit, so maybe it’s about time it broke to the downside?
Scenario A
Near term, if it gets above 198, it rises for now.
On the 1-hour chart (H1), this would form a double bottom and push higher.
The target is the current range high at 198.4, but there isn’t much room to run.
Scenario B
My read is that it’ll probably dip for now?
In that case, a retracement up to around 198 would make a good entry point.
Target is around 197
Scenario C
Selling the rally after a break below.
Price is reacting at the pink line right now, but I see the yellow line as the range low.
I’ll look to sell the rally after it breaks below that.
Same strategy as yesterday.
Target is 197
Review
Price dropped and then rallied, and in the end it bounced off the yellow support line.
Early on, it was a short from ○1 under Scenario C.
However, price failed to make a new low and formed waves on the 5-minute chart (M5) as it climbed back up, so this ended in a breakeven exit.
After that it was wait and see, but the upward momentum was strong and price broke above what I had seen as the top of the range.
From there, it was a long from ○2 under Scenario A.
At the time of Scenario A, the target was the pink line at 198.4, but because price dipped once and then rallied, the 1-hour chart (H1) has also turned.
You can take profit at the pink line as per the scenario, but holding is also fine.
If you took profit, it was about 35 pips.
After that, price rose further, and a long was possible from ○3, the pullback after the break of the pink line.
In that case, take profit where price stalls on the 5-minute chart (M5) just before 199, which had been a key level all along. 45 pips
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.
