How to Trade GBP/JPY in the London Session with Smart Money Concepts

Jasper Osita - Market Analyst

2025-08-13 12:20:33

The Beast of the London Session

If EUR/USD is a marathon runner and GBP/USD is a sprinter, then GBP/JPY is the high-performance sports car of the London session.

When it moves, it moves fast - often clocking 100+ pip ranges before New York even opens.

This isn’t just a catchy nickname. GBP/JPY has earned the title “The Beast” because of its:

High volatility compared to most major pairs.
Wide intraday ranges that can hit triple digits on a regular basis.
Sudden spikes that can wipe out unprepared traders just as fast as they create profit opportunities.

But with that speed comes danger. Without a proper read on liquidity, timing, and confirmation, GBP/JPY will just as easily run you over as it will deliver a massive win. That’s where Smart Money Concepts comes in.

Why GBP/JPY Explodes in London

GBP Volatility + JPY Liquidity Gaps
- London’s institutional flows push the Pound aggressively.
- The Yen, heavily influenced by Asian session moves, often reacts sharply to these shifts.
Cross-Pair Momentum
- GBP/JPY amplifies GBP/USD and USD/JPY moves, creating larger percentage swings.
News-Driven Spikes
- UK economic releases at 7:00–9:30 AM London time often hit this pair hardest.

GBP/JPY Volatility - When the Beast Roars

One of the key reasons traders love and fear GBP/JPY is because of its consistent, high volatility - especially in the London session.

Volatility by Day of the Week

Thursday is the most volatile day, averaging over 140 pips in range.
Friday follows closely, with strong moves driven by week-end position adjustments.
Monday–Wednesday still deliver strong opportunities but average closer to 120–130 pips.

Key takeaway: If you want maximum opportunity, Thursday and Friday are your high-volatility days.

Volatility by Hour of the Day

Volatility starts building from 7–9 AM London time - right at the London open.
The New York crossover (14:00–17:00 London) often brings a second burst of movement.

Key takeaway: For intraday traders, the first 2–3 hours of London give some of the cleanest, highest-probability moves, with the NY overlap offering a potential follow-up opportunity.

Step-by-Step Guide in Trading GBP/JPY

Step 1 - Frame the Daily Bias

Before you even think about London entries, zoom out and frame the daily trend or bias. This is your compass - it tells you whether to primarily look for longs or shorts in the London session.

Daily / H4: Determine if institutional order flow is bullish or bearish.
Look at where price is relative to higher timeframe Fair Value Gaps (FVGs), previous day’s high/low, and other liquidity pools.
Ask: Are we in a continuation phase, or are we reacting from a major liquidity grab?

In this case, overall institutional order-flow is bearish, so we look for sweeps of highs then a downside move.

Step 2 - Use the Asian Session as the Setup Stage

Before London opens, GBP/JPY usually consolidates in a defined Asian range. Mark the Asian high and low - this is your liquidity map.

Accumulation (Asia) → tight range, low volume.
Manipulation (London open) → sweep of one side of the Asian range.
Distribution (London–NY) → real move in the opposite direction of the sweep.

Since the market is dynamic, not all highs and lows of the day form during London. But when they do, those moves are, more often than not, explosive.

Tip: Use M15 for better visualization.

Step 3 - Confirm with Higher Timeframe Bias

H1 / M15: Identify the key Fair Value Gaps (FVGs) and liquidity zones.
Alignment increases the probability the London move is the start of a trend day, not just a scalp.

In the example above, price is currently testing the H1 Bearish FVG. Potential sweep of Asian High increases as an Engulfing Candle emerges.

Step 4 - The London Sweep Play

Classic GBP/JPY London Setup:

Mark Asian high/low.
Wait for London to sweep one side aggressively.
Drop to M5/M1 - look for Market Structure Shift (MSS) + displacement in the opposite direction.
Enter on FVG retest with stop beyond the sweep high/low.

Trade Precaution:

Note that based on our volatility, the most probable trades for GBPJPY should be executed at the actual London Open 15:00 UTC.

Your task? Wait.

Step 5 - Manage Volatility with Risk Control

GBP/JPY’s ATR is often 2x that of EUR/USD.

That means:

Smaller position size than you’d use on slower pairs.
Wider stops to survive manipulation wicks.
Focus on quality setups only - 1 or 2 per session max.

Step 6 - Targets and Exit Strategy

Common targets in London:

Opposite side of Asian range.
Next HTF liquidity pool (previous day high/low).
Psychological levels (e.g., 190.00, 191.00).

Riding the Bullet Train

Trading GBP/JPY in London is like boarding a Japanese bullet train - you need to know exactly when it leaves the station. Once it goes, it’s fast, smooth, and powerful - but if you hesitate, you’ll be left watching it disappear.

Final Thoughts

GBP/JPY offers some of the best risk-to-reward opportunities in the London session - but only if you respect its volatility.

By combining Asian range sweeps, HTF bias, and SMC entry models, you can turn this wild pair into a calculated opportunity machine.

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This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

Author

Jasper has been in the markets since 2019 trading currencies, indices and commodities like Gold. His approach in the market is heavily accompanied by technical analysis and of course, supported by fundamentals. He has a background in trading proprietary firms and has been teaching students how to navigate themselves in the markets from basic to advance concepts.

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Prices are indicative only

How to Trade GBP/JPY in the London Session with Smart Money Concepts

The Beast of the London Session

Why GBP/JPY Explodes in London

GBP/JPY Volatility - When the Beast Roars

Volatility by Day of the Week

Volatility by Hour of the Day

Step-by-Step Guide in Trading GBP/JPY

Step 1 - Frame the Daily Bias

Step 2 - Use the Asian Session as the Setup Stage

Step 3 - Confirm with Higher Timeframe Bias

Step 4 - The London Sweep Play

Trade Precaution:

Step 5 - Manage Volatility with Risk Control

Step 6 - Targets and Exit Strategy

Riding the Bullet Train

Final Thoughts

Start Practicing with Confidence - Risk-Free!

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