GBP/JPY Trading Strategy - Buy to 194GBP/JPY Trading Strategy - Buy to 194
I. Technical Analysis
1. Overall Trend
On the H4 timeframe, GBP/JPY shows signs of a bullish reversal:
The price has broken through the previous resistance zone 190.4 - 191.0 and is holding above it.
EMA 33 & EMA 50 are starting to slope upwards, indicating an uptrend.
Volume is increasing as the price bounces off the support zone.
On the D1 timeframe, GBP/JPY is recovering from a correction, aiming for the next resistance zone 194.0 - 194.2.
2. Key Support & Resistance Levels
✅ Strong Support (Potential Buy Zone):
190.2 - 190.4: Newly established support after the breakout.
189.2: Strong support; if broken, the uptrend may be invalidated.
✅ Target Resistance (Take Profit - TP):
194.0 - 194.2: Significant resistance on H4 & D1 charts.
✅ Trend Confirmation Indicators:
RSI > 55, not overbought, still has room to rise.
Volume increasing on price rise, confirming buyers' control.
II. Trade Setup
1. Entry Point
BUY entry when price retraces to 190.4 - 191.0.
Split orders:
50% of the position at 190.4.
Remaining 50% at 190.0 if the price continues to correct.
2. Stop Loss (SL)
189.2: If the price breaks this level, the uptrend is invalidated.
3. Take Profit (TP)
TP1: 192.5 → Close 50% of the position and move SL to breakeven.
TP2: 194.0 - 194.2 → Close the remaining position.
4. Risk/Reward Ratio (R:R)
Average Entry: 190.7
SL: 189.2 (-1.5 pips)
TP: 194.0 (+3.3 pips)
R:R = 2.2:1 → Favorable risk-reward ratio for swing trading.
III. Risk Management & Market Scenarios
🔸 If price moves in our favor:
✅ When the price reaches 192.5, move SL to breakeven to secure capital.
🔸 If price drops to 189.2:
❌ Exit all positions as the uptrend is invalidated.
🔸 Key signals to watch:
⚠️ If price surges past 191.8 without a pullback, consider waiting for a retracement before entering.
IV. Conc......
BUY GBP/JPY at 190.4 - 190.0, TP 194.0, SL 189.2.
Good R:R ratio (2.2:1), suitable for swing trading.
Holding period: Within this week, monitor closely.
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