2026/01/20 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Yesterday’s rise has left the chart in an awkward shape.
My basic bias is bullish, but this is also a price zone where selling the rally on the 4-hour chart comes in, so I expect some resistance.

It’s safer to buy after price breaks out to the upside.
On the downside, I’m looking to buy until price breaks below line C, but if it drops this far, it becomes hard to buy in the short term.

The area from A to C is an awkward range, so the key is not to jump in half-heartedly and to wait patiently for the right timing.

Review

It played out as Scenario A.

The first rally had no pullback, so it’s not really tradable.
Once price came back down again, you could buy it as a 1-hour pullback.

Short term, price was heading lower, but this is a line that acts as support on the 1-hour and 4-hour charts, so it’s a buy.
Take profit when it lost momentum at the recent high. 47 pips
Since this was countertrend trading on the short-term timeframe, the plan was to close out by taking profit for now and wait for the next opportunity.