2025/02/24 GBP/JPY Strategy
Price has risen for now, but overall the downtrend doesn’t seem to have changed.
For day trading, this is a situation to go in with a short-term bias to the buy side.
Since the idea is to catch the retracement before it turns back into a decline in line with the bigger trend, I don’t expect this to be a trade where long entries are held for a long time.
Applying the short-term buy + wait-for-a-bearish-shift strategy to the current chart shape:
Scenario A
Buying the dip from 15-minute chart (M15) support/resistance (S/R). Target around 189.5
Scenario B
Buying the dip if the market continues to climb further. Target around 190
Scenario C
Selling the rally after the current buying flow breaks down. Target 188.3, or around 187.3 below that
Review
Coming after a big move the previous day, this wasn’t a day to expect much, and sure enough it ended up ranging.
Seeing it turning down (making lower highs) around 3 pm to 4 pm JST (06:00 to 07:00 UTC), I’d call this a “no trade” day.
If you really wanted to take something, it would probably be a long from ○1.
You’d enter after seeing it turning up (making higher lows) from the 15-minute Dow pullback low, a spot where you could take about 40 pips up to the range high.
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
