2026/05/07 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

Right now, the daily chart favors sellers, the 4-hour chart is ranging, and the 1-hour chart favors sellers but is also ranging.
The range is narrow, and if price breaks above it, I’d switch to buying for day trades.
Looking at it from the starting point of the big drop on Apr 30, the current price zone is a candidate for selling the rally, but if you ask whether I want to sell right now, I’m not so sure. It looks like a market where both sides will keep feeling each other out for a while.

I think it’s also possible that price breaks above the range first, then drops from around the yellow line just above.
If I were to sell from the current situation, I feel it’s better to aim for the retracement after a break below.

Review

It played out as Scenario A.

The pink line near the letter B acted as support, and price broke through the range high.
I went long at the red circle, which was the pullback that followed.
The rally stalled at the yellow line, so I simply took profit. 20 pips