2025/11/07 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

Not much has changed since yesterday, but sellers have gained more of an edge than they had yesterday.
Given the flow on the higher timeframe as well, looking for shorts seems like the way to go.

Scenario A

If price breaks above Line A, buying is fine.
Once it gets above here, it will probably chop around indecisively in a range, but if you’re going long, the target is around 202.

Scenario B

Go short once price fails to break above Line A and starts turning down (making lower highs).
For now, the targets are around Line C or the blue line at yesterday’s low, but if it drops further, down to 199.

Scenario C

I’m still treating Line C as the range low, but since there was a drop that made yesterday’s low, this is a spot where opinions may differ.
If you sell from around Line C, you need to watch out for a bounce from around the blue line below it.

Review

It played out as Scenario B → Scenario A.

Short from ○1, the retracement after the failed break of Line A.
Take profit when price reaches Line C and starts turning up. 30pips

With the rise just before ○1, the market was one where you could have switched your bias to buying, so treating the area around the blue marker as the range low and reversing to a long at the take-profit point would also work.

If you followed the morning scenario, it’s a long from ○2, the pullback after breaking above Line A.
Here too, take profit where a bearish candle appears after reaching the 202 target. 57pips