2026/01/08 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

It’s been falling all the way since yesterday, but now it feels like it might be bottoming out.
I’d like to target a pullback from here.

This rise seems to be dragged along by the rise in USD/JPY, but looking at the correlated GBP/USD, it looks like it could close as a bearish candle on the weekly chart.
The decline has stopped right at a key level on the daily chart, but if it breaks below around 1.345, I think we could see a flow of further declines tomorrow and into next week and beyond.

If that happens, GBP/JPY could also come under downward pressure, so it seems best to trade with that background in mind.

Review

It went down.

It feels like price dropped all the way to the 4-hour range low.
After it broke the morning low, the small retracement at circle ① could be sold as Scenario C.
Take profit when it reached the target pink line at 210.6. 20 pips

Overall, this is a situation where I want to look for buys, so I won’t hold the short.

After that, though it comes after the scenario update, you can go long from circle ② after the turnaround.
I’d like to buy a little earlier, but it overlaps with the US data release, so I wait for that before going long.