Aug 26, 2025 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

Simply waiting to sell the rally.
There isn’t much on the buy side, but on the 4-hour chart this is a price zone that acts as a support band.
Watch out for a rise after a failed break of the recent low.

Scenario A
If price breaks above Line A around 198.8, I’ll switch to a bullish bias.
Right now I can’t really picture myself buying, but if I had to set a target, it would be around 199.2

Scenario B
Sell after a retracement to a good level.
Both buyers and sellers come in at the pink zone, so ideally I’d like to see price turn back down below it.
The target, assuming the recent low breaks, is 197.6
Be a little careful around 198 along the way.

Scenario C
The blue line is a key level on the 4-hour chart.
If it breaks, I think we’ll see another leg down.
I’d really like to catch that first drop.
The target is again 197.6

Review

It was a day without any good moves.

Price kept rising steadily from the morning scenario and broke above the recent high on the 15-minute chart.
I briefly wondered whether this was Scenario A, but on the 1-hour chart (H1) there was a wick and price was just barely at the range high, so I chose to wait and see.
After that, once the rise broke down on the 5-minute chart (M5) level, I went short at the red circle on the retracement.

However, as I noted on the morning chart, the zone from A to B is where buying and selling clash.
I took profit when the decline stalled near Line B. 23 pips