🧠 Overview:
This 2-hour chart of USDJPY highlights a clear bearish structure following a smart money-driven move. The price action reflects market maker behavior, liquidity manipulation, trendline rejections, and strategic zone targeting. Let's break down the key elements for today’s USDJPY analysis.
🔍 Key Technical Breakdown:
1. 🏦 Liquidity Grab & Fill (July 17th)
The marked green zone shows an aggressive liquidity sweep where the price dipped sharply into a previous demand zone, triggering stop losses and collecting institutional orders.
This movement represents a classic "liquidity fill", often engineered by market makers to trap retail buyers/sellers.
After sweeping liquidity, price quickly reversed upwards — a signal that large buy orders were triggered and filled.
2. 🎯 Central Zone as a Distribution Region
The market retraced to the "Central Zone", highlighted on the chart, which acted as a distribution area:
Price consolidated and created indecision before rejecting sharply again.
This zone reflects a short-term supply where institutional players may have offloaded positions.
Key clue: This consolidation occurred below the major trendline, increasing its strength as resistance.
3. 🔻 QFL Zones (Quasimodo Failure Levels)
Two QFL levels are marked, which denote structure breaks and retracements in MMC/SMC strategy:
First QFL marks a major support break – a signal of shifting market sentiment from bullish to bearish.
Second QFL confirms continued lower lows formation – solidifying bearish market structure.
These levels are critical in identifying market intent and anticipating future moves.
4. 📉 Descending Trendline Rejection
The descending trendline drawn from recent highs is being respected continuously:
Price tested the trendline multiple times but failed to break above.
These rejections represent seller dominance and validate the trendline as a dynamic resistance.
A break above this line would invalidate the current bearish structure.
5. 🎯 Next Target – Major Demand Zone (145.00–145.20)
Price is heading toward a major demand zone marked in green around 145.000:
This area is a strong buy-side liquidity zone, where institutional buyers may show interest again.
If this zone is tapped, we may see either:
A bounce (bullish reaction), or
A breakdown and continuation lower if bearish momentum continues.
Traders should monitor this area closely for price action signals (engulfing candles, rejection wicks, or bullish divergence).
🧠 Strategic View:
Bias: Bearish, unless trendline breaks with strong volume.
Ideal Entry: Look for short entries on lower timeframe pullbacks into minor resistance (like trendline or last supply zone).
Target Area: 145.00 – ideal zone to book profits or switch bias.
Invalidation: A break and close above the descending trendline + central zone.
🔑 Confluences in This Analysis:
Concept Details
✅ Liquidity Grab Trap & Fill strategy at prior lows
✅ Central Zone Bearish distribution and rejection
✅ Trendline Repeated resistance rejections
✅ Structure Lower lows and QFL confirmations
✅ Target Area Clear next demand zone identified
⚠️ Risk Note:
As always, wait for confirmation before entering trades. The market may fake out near zones. Use proper risk management (1-2% risk per trade) and adjust your strategy as new candles form.
📌 Conclusion:
This chart paints a textbook scenario of how institutional movements and structure-based analysis (MMC/SMC) can offer high-probability setups. We expect further downside toward the 145.00 region before any significant reversal. Keep an eye on reaction from this demand zone for the next play.
This 2-hour chart of USDJPY highlights a clear bearish structure following a smart money-driven move. The price action reflects market maker behavior, liquidity manipulation, trendline rejections, and strategic zone targeting. Let's break down the key elements for today’s USDJPY analysis.
🔍 Key Technical Breakdown:
1. 🏦 Liquidity Grab & Fill (July 17th)
The marked green zone shows an aggressive liquidity sweep where the price dipped sharply into a previous demand zone, triggering stop losses and collecting institutional orders.
This movement represents a classic "liquidity fill", often engineered by market makers to trap retail buyers/sellers.
After sweeping liquidity, price quickly reversed upwards — a signal that large buy orders were triggered and filled.
2. 🎯 Central Zone as a Distribution Region
The market retraced to the "Central Zone", highlighted on the chart, which acted as a distribution area:
Price consolidated and created indecision before rejecting sharply again.
This zone reflects a short-term supply where institutional players may have offloaded positions.
Key clue: This consolidation occurred below the major trendline, increasing its strength as resistance.
3. 🔻 QFL Zones (Quasimodo Failure Levels)
Two QFL levels are marked, which denote structure breaks and retracements in MMC/SMC strategy:
First QFL marks a major support break – a signal of shifting market sentiment from bullish to bearish.
Second QFL confirms continued lower lows formation – solidifying bearish market structure.
These levels are critical in identifying market intent and anticipating future moves.
4. 📉 Descending Trendline Rejection
The descending trendline drawn from recent highs is being respected continuously:
Price tested the trendline multiple times but failed to break above.
These rejections represent seller dominance and validate the trendline as a dynamic resistance.
A break above this line would invalidate the current bearish structure.
5. 🎯 Next Target – Major Demand Zone (145.00–145.20)
Price is heading toward a major demand zone marked in green around 145.000:
This area is a strong buy-side liquidity zone, where institutional buyers may show interest again.
If this zone is tapped, we may see either:
A bounce (bullish reaction), or
A breakdown and continuation lower if bearish momentum continues.
Traders should monitor this area closely for price action signals (engulfing candles, rejection wicks, or bullish divergence).
🧠 Strategic View:
Bias: Bearish, unless trendline breaks with strong volume.
Ideal Entry: Look for short entries on lower timeframe pullbacks into minor resistance (like trendline or last supply zone).
Target Area: 145.00 – ideal zone to book profits or switch bias.
Invalidation: A break and close above the descending trendline + central zone.
🔑 Confluences in This Analysis:
Concept Details
✅ Liquidity Grab Trap & Fill strategy at prior lows
✅ Central Zone Bearish distribution and rejection
✅ Trendline Repeated resistance rejections
✅ Structure Lower lows and QFL confirmations
✅ Target Area Clear next demand zone identified
⚠️ Risk Note:
As always, wait for confirmation before entering trades. The market may fake out near zones. Use proper risk management (1-2% risk per trade) and adjust your strategy as new candles form.
📌 Conclusion:
This chart paints a textbook scenario of how institutional movements and structure-based analysis (MMC/SMC) can offer high-probability setups. We expect further downside toward the 145.00 region before any significant reversal. Keep an eye on reaction from this demand zone for the next play.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.