EURJPY Bullish Breakout with IFC Confirmation | MMC Retest Play🔍 Market Structure & Price Behavior Explanation
🔹 1. Channel Structure and Bearish Trap:
The pair was previously trading within a downward sloping channel, forming lower highs and lower lows. This structure was respected for several sessions, creating a bearish bias for most retail traders.
However, as per Mirror Market Concepts, such channels often act as liquidity traps — designed to build sell-side liquidity before a strong reversal.
🔹 2. IFC Candle Break — Smart Money Confirmation:
A powerful bullish impulse candle (IFC - Institutional-Filled Candle) broke through all previous swing highs formed inside the channel. This is a critical sign that institutional buyers have stepped in and the bearish trend is likely over.
This candle is not just a breakout but also a signature of smart money transitioning the market structure from bearish to bullish. The breakout occurred with high momentum and volume, piercing through the upper channel boundary, invalidating the bearish trend.
📘 Key Note: IFC candles usually represent imbalance, strong directional intent, and are often followed by continuation after retest.
🔹 3. Retesting Phase – Key to Confirmation:
After the breakout, price retested the broken structure, which is now acting as a new demand zone. The retest is clean, holding firmly above minor support — giving confirmation of bullish control.
This zone is also aligned with a QFL (base structure) concept, where price returns to the base before a new leg of the trend begins.
🔹 4. Current Price Action: Building for Next Leg
Price is now consolidating just below the next key reversal zone (marked in green). This zone represents potential supply or resistance.
There are two likely outcomes here:
Rejection at the reversal zone, with a potential pullback before continuation.
Clean break above, followed by "Demand Doubling", where price re-tests this level again, confirming further upside momentum.
In case the second scenario plays out (as marked on the chart), EURJPY could aggressively rally toward 174.400 and beyond.
🔹 5. Demand Zones & Key Levels:
✅ Minor Demand Zone (~173.00):
Currently respected — origin of last bullish move.
✅ Major Demand Zone (~171.200):
Acts as macro support in case of deep retracement.
✅ Reversal Zone (~173.800 – 174.200):
Price may slow down, reject, or consolidate here. Smart money usually decides at this level.
📈 MMC Trading Plan (Mirror Market Concept Approach):
Buy Bias is active as long as price remains above the minor demand zone.
Any rejection from reversal zone with wick traps followed by bullish engulfing setups = potential long entries.
Break & hold above 174.200 will likely trigger momentum-based entries, targeting extended bullish continuation.
💹 Trade Setup Parameters:
📥 Entry #1: After successful retest and bullish confirmation at demand
🛑 Stop Loss: Below retest structure (~172.850)
🎯 Take Profit 1: 173.950 (within reversal zone)
🎯 Take Profit 2: 174.350+ (post-demand doubling continuation)
🧠 Trader’s Mindset – What to Expect Next:
The chart is a classic example of MMC in real-time, where:
Price traps sellers inside a fake bearish channel
Breaks structure using high-volume impulsive moves
Retests demand zone cleanly
Builds up toward the next decision-making zone
Patience is key here. Let price either break and confirm above the reversal zone or give us another deep retest for the best R:R long setup.
