2025/09/18 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

The price has turned back to the upside.
The strategy is to wait for a pullback and aim for the recent high on the 4-hour chart.

Scenario A
If the price breaks higher without coming back down to around Line B, I’ll look to buy the pullback after the breakout.
Target: 200.6

Scenario B
If the price drops again, I’ll wait for downside stalling around Line B before going long.
The target is the same as Scenario A, but the first key point is whether it breaks through Line A.

Scenario C
This is a short on a break below the range, but be careful: the blue line just below at 199.8 looks likely to act as support.
It might be safer to wait for the price to break below the blue line first and then sell the retracement.
The area from Line B down to the blue line is a price zone where both buyers and sellers are likely to step in.
Target: 199.5

The UK interest rate decision is at 8 pm JST (11:00 UTC).

Review

It was Scenario A.

Support/resistance (S/R) formed at the recent high, slightly above Line A.
Price broke through the target without any pullback and reached the 201 yen round number, and I took profit when it started to look like it was forming lower highs. 54 pips
With a data release coming up, it was a good time to close out.