2026/05/21 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

We’re still in the 4-hour rally high zone.
After yesterday’s rise, it no longer really feels like price wants to drop, but I don’t think there’s enough momentum for it to rise straight away either.
I think 213.7, just a little above the current price, will be watched as the rally high, so if price is going to break through, I suspect it will first form a pullback and build up strength.

In that case, the most likely scenario is a drop to around the zone above Line C to form a pullback.
I’m also considering a pattern where price rises without breaking Line B, as shown by the faint arrow, but in that case I’ll only buy after confirming that Line B is holding firmly.

Review

The market stayed in a range.

I went long from the red circle, the pullback after price briefly broke above Line A.
As noted in the target, my view was that price wouldn’t break above the blue line at 213.7 just above Line A, so I treated it as a range from the pink line near the letter B up to the blue line. The risk-reward was borderline, so it was a bit of a judgment call.

I took profit when price formed an upper wick without breaking the blue line. 20 pips