Oct 31, 2025 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Yesterday’s rally reached the target, so price may move into consolidation from here.
Before that, though, I think there will be one more push higher, and I’d like to trade that move up.

Scenario A

If price breaks above the recent high, I’d simply follow it.
If we see this as a rally from the double bottom on the daily chart, I think a move up to around 205.2 at most is possible.
Day-trade target: around 204

Scenario B

Right now, the short-term picture favors selling.
If you want to scalp small moves, it’s fine to look for shorts off the blue line near the letter B.
However, the 1-hour chart (H1) is in an uptrend, so the price zone from the pink line at around the current price down to near Line C could act as support and produce a bounce.
Trading that rally offers more room to run, so I’ll wait for the reversal.
Target: Line A, and if it breaks, up to around 204

Scenario C

If price breaks below Line C, it may not rise again right away.
I’d like to take a short-term short from a retracement.
Target: around 201.7

Review

It played out as Scenario B.

Price bounced off the pink line, and once the downtrend broke down, I went long at the red circle, which was the pullback.
I held, expecting a move up to the recent high, but there was no momentum and price started losing momentum.
I exited when the flow turned back down. About 10 pips.