2025/10/29 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

It has been falling the whole way, but it has bounced short-term and made a bullish shift.
I’d like to buy the next pullback, but a real rally only starts once price breaks above the upper line.

Scenario A

A break above Line A turns the 1-hour chart (H1) bullish as well.
After such a big drop, there’s a good chance of a big retracement, so I want to go after this one actively.
Target: 203

Scenario B

If you’re looking for a short-term long, I’d buy a bounce from around Line B.
Until it breaks Line A, the 1-hour chart (H1) is still bearish, but it has also formed a higher-low double bottom, so I think it’s worth buying.
The target is up to 202.1, but I think it’s fine to hold on the assumption that it rallies and breaks through.

Scenario C

If it breaks below Line B, things get a bit tricky.
Basically I’ll treat it as a continuation of the downtrend and look at selling the rally.
However, the recent low around 201.3 will act as support, so if you sell, unless you’re assuming it breaks below the recent low, the risk-reward is likely to be poor.
The target below that is around 200.7

Also, if it fails to break above Line A, selling on turning down (making lower highs) near Line A is also an option.
The 1-hour chart (H1) is technically still in sell mode, so the strategy is to sell from around the rally high.

Review

It dropped another leg.
Since this is a retracement after the drop, we can sell with Scenario C.
It’s also a retracement after breaking the 201.3 support, so it’s an easy sell.
Take profit when it reaches the yellow line around the 200.7 target. 70 pips