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USDJPY 2H Analysis : Trendline Break or Double the Supply?

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🧠 Market Context:
The market has recently undergone a liquidity grab followed by a temporary bullish reaction, indicating that large players (institutions or market makers) are manipulating price around sensitive zones before committing to a direction.

🧱 Key Technical Zones & Observations:
🟩 1. Liquidity Filled Zone (Smart Money Move)
Location: Around July 17.

Explanation: Price dropped impulsively into a pre-marked liquidity pocket. This filled buy-side liquidity resting below previous lows.

Implication: Smart money has now captured trapped breakout sellers. Expectation of reversal or bullish mitigation.

🟧 2. Central Zone (Supply/Distribution Area)
This zone was tested multiple times, signaling it as a supply-rich region.

Acted as a base for previous strong bearish move.

If the trendline is broken, price may retest this Central Zone, potentially acting as resistance again.

🟩 3. QFL Formation (Quantity Following Line)
Nature: Base breakout with a fast snap-back indicates institutional demand.

The structure signals a failed breakdown or liquidation trap.

Actionable Insight: Strong bounce potential here, ideal for sniper long entries if market structure shifts bullish.

🟦 4. Trendline (Critical Validation Tool)
The descending trendline from July 18 has acted as dynamic resistance.

Multiple rejections validate its significance.

Main Conditional Setup hinges on this trendline:

Break = Bullish structure shift

No break = Trend continuation (retest of demand or breakdown)

🔁 5. Previous Reversal Completed
Price action has printed a reversal model (possibly Wyckoff-style accumulation or spring).

Completion of the pattern aligns with upcoming directional decision.

✅ Conditional Trade Scenarios:
🔺 Condition 1: Bullish Breakout Above Trendline
Setup: Price breaks and closes above the trendline with volume and momentum.

Action: Buy on retest of broken trendline or confirmation candle.

Targets:

Short-term: 147.50

Major: 148.00 – strong resistance/supply zone

Validation: Structure shift + momentum + rejection of prior supply.

🔻 Condition 2: Rejection from Trendline (Trendline Holds)
Setup: Price respects the trendline and fails to break.

Action: Short on bearish engulfing/rejection.

Plan: "Double the supply zone" as per your label.

Targets: 146.20 → 146.00 zone

This respects the previous price memory and liquidity void.

🧠 Deeper MMC Insight:

The market is in indecision phase, balancing between continuation and reversal.

Institutional footprints (QFL + liquidity fills + trendline rejections) suggest preparation for a trap-spring-accumulate or distribution-breakdown move.

Watch for fakeouts around the trendline – MMC logic says market makers often induce both directions before committing.

🧭 Trade Management Tips:
If long: Protect below the QFL base.

If short: Watch for manipulation around the Central Zone.

Wait for confirmation: Don’t pre-enter before structure validates direction.

Disclaimer

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