Analysis:
On the USDJPY 30-minute chart, we're observing price action that suggests a potential continuation of the bullish trend after a recent pullback. Applying "Smart Money Concepts" to our analysis, here's what we're seeing:
Previous Structure Break & Bullish Order Flow: Looking left, we can see that price has recently broken significant previous highs, indicating a shift towards a bullish market structure. The general order flow has been upwards, despite recent retracements.
Liquidity Sweep & Institutional Interest (Potential): The sharp move down on June 5th, while looking bearish to some, could be interpreted as a "liquidity sweep" or a "stop hunt" by larger players. This often happens to absorb sell-side liquidity before a significant move higher. Price then moved back into an area of interest.
"Fair Value Gap" / Imbalance Filling: Price has recently come back into (or is approaching) an area where there was a rapid move up, leaving behind what's often referred to as a "Fair Value Gap" or an "Imbalance." Smart money often revisits these areas to "fill" or "mitigate" these gaps before continuing the trend. This suggests that the current pullback might be a retest of such an area.
"Order Block" / Demand Zone: We've identified a potential "order block" or a strong demand zone (the highlighted pink box) where institutional buying pressure was likely present previously. Price is currently interacting with this zone, and we anticipate a reaction from here. This is an area where we would expect smart money to step back in and push price higher.
Trading Idea:
Entry: We're looking for confirmation of bullish momentum around the current price levels, ideally within or just above the identified demand zone (pink box). A clear break and retest of the immediate resistance at approximately 143.600 could provide a good entry.
Target: Our primary target is the previous swing high around 145.770, representing a potential expansion of the bullish trend.
Invalidation: Our invalidation level (stop loss) would be placed below the identified demand zone, specifically below 143.000. A break below this level would invalidate our bullish thesis and suggest a deeper retracement or a potential trend reversal.
In Summary:
We are anticipating a continuation of the bullish trend on USDJPY, predicated on the idea that the recent pullback was a liquidity sweep and a retest of a significant demand zone/order block. We're looking for price to respect this area and push towards new highs.
Disclaimer: This is for educational purposes only and not financial advice. Trade responsibly and manage your risk.
On the USDJPY 30-minute chart, we're observing price action that suggests a potential continuation of the bullish trend after a recent pullback. Applying "Smart Money Concepts" to our analysis, here's what we're seeing:
Previous Structure Break & Bullish Order Flow: Looking left, we can see that price has recently broken significant previous highs, indicating a shift towards a bullish market structure. The general order flow has been upwards, despite recent retracements.
Liquidity Sweep & Institutional Interest (Potential): The sharp move down on June 5th, while looking bearish to some, could be interpreted as a "liquidity sweep" or a "stop hunt" by larger players. This often happens to absorb sell-side liquidity before a significant move higher. Price then moved back into an area of interest.
"Fair Value Gap" / Imbalance Filling: Price has recently come back into (or is approaching) an area where there was a rapid move up, leaving behind what's often referred to as a "Fair Value Gap" or an "Imbalance." Smart money often revisits these areas to "fill" or "mitigate" these gaps before continuing the trend. This suggests that the current pullback might be a retest of such an area.
"Order Block" / Demand Zone: We've identified a potential "order block" or a strong demand zone (the highlighted pink box) where institutional buying pressure was likely present previously. Price is currently interacting with this zone, and we anticipate a reaction from here. This is an area where we would expect smart money to step back in and push price higher.
Trading Idea:
Entry: We're looking for confirmation of bullish momentum around the current price levels, ideally within or just above the identified demand zone (pink box). A clear break and retest of the immediate resistance at approximately 143.600 could provide a good entry.
Target: Our primary target is the previous swing high around 145.770, representing a potential expansion of the bullish trend.
Invalidation: Our invalidation level (stop loss) would be placed below the identified demand zone, specifically below 143.000. A break below this level would invalidate our bullish thesis and suggest a deeper retracement or a potential trend reversal.
In Summary:
We are anticipating a continuation of the bullish trend on USDJPY, predicated on the idea that the recent pullback was a liquidity sweep and a retest of a significant demand zone/order block. We're looking for price to respect this area and push towards new highs.
Disclaimer: This is for educational purposes only and not financial advice. Trade responsibly and manage your risk.
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.
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.