2026/02/04 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

I’m looking to buy, but I can’t get in for now.
Price is near the highs on the daily chart, so I don’t think it’s very likely to keep rising from here.
It’s better to wait for a pullback that’s clear on the 1-hour chart (H1) first.

With that in mind, the opportunity will probably come from the European session onward.

Ideally, price comes down to around the B line, but I think it could also form a small range higher up without dropping that far and then rise.
Since we’re near the highs, it’s best not to force a trade when the risk-reward isn’t good, and to wait for a chance instead.

Review

No trade

Price reached the target, Line A, without forming a pullback.
Buying at circle ①, where price rises after forming a 5-minute chart (M5) level pullback following the break of Line A, is fine, but this price zone is a resistance zone where a drop is likely at least once, so it’s not a spot to force a trade.

As it turned out, price rose about 60 pips after that, but it came back down before the day ended.

On the other hand, circle ② is a fine place to sell.
It’s a short that rides the move down after price failed to break above the area near the highs on the daily chart.