DeGRAM | USDJPY correction 📊 Technical Analysis
● Monday's rebound above the 4-month falling trend line was quickly repelled, leaving a “false breakdown” candle; price has returned under the line and is now retesting it as resistance around 144.65.
● The rebound also stopped at the top of the triangle and a small bearish flag formed; the height of the pattern points to the 142.80 support band and the broader channel to 139.90 as continuation.
💡 Fundamental analysis
● Softer U.S. core GDP data drove 2-year Treasury yields to two-week lows, reducing the rate differential that favored the dollar.
Meanwhile, Japanese officials again warned that they “do not rule out any measures” against excessive yen weakening, raising the risk of intervention and discouraging new long USD/JPY positions.
Summary
Short 144.4 - 144.65; break below 143.8 targets 142.8 -> 139.9. Bearish view loses strength with a 4-hour close above 145.30.
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JPYUSD trade ideas
Buy limit order at $143.400 after a retest confirms supportAnalyzing the USD/JPY across multiple timeframes, we observe a consistent pattern of price recovery after a significant drop, indicating a potential phase of accumulation by institutional players. The daily chart shows a recent decline followed by a stabilization and slight upward movement, suggesting a possible change of character (CHoCH) from bearish to bullish momentum. The 4-hour and 1-hour charts confirm this with a series of higher lows and higher highs, indicative of a shift towards bullish sentiment.
The 15-minute, 5-minute, and 1-minute charts display more granular price action, with recent bullish candles suggesting an ongoing push for higher prices. This could be a response to retail selling pressure being absorbed by institutional buying, a common scenario during early stages of a bullish reversal.
INSTITUTIONAL THESIS:
Institutions appear to be in the early stages of an accumulation phase, targeting liquidity above recent highs to trigger stop losses and fuel further upward movement. The presence of unmitigated order blocks (OB) on the 1-hour chart around 143.400 provides a potential area for re-entry, suggesting that price may revisit this zone to balance before continuing upwards.
LEARNING POINT:
"1H Order Block mitigation after liquidity sweep" - This scenario highlights how institutions often retest key levels where significant orders were previously placed, confirming their commitment to driving the price in the intended direction.
SIGNAL: BUY
SYMBOL: USDJPY
ENTRY PRICE: $143.400
STOP LOSS: $143.200
TARGET PRICE: $144.000
CONDITION: Buy limit order at $143.400 after a retest confirms support.
RATIONALE: The setup aligns with a bullish CHoCH on multiple timeframes, presence of a 1H OB, and the anticipation of a liquidity sweep above recent highs.
STRATEGIES USED: 1H OB Mitigation, Liquidity Sweep Above Recent Highs
URGENCY: MEDIUM
TIMEFRAME: Short-term
CONFIDENCE SCORE: 85%
RISK/REWARD RATIO: Risk=$0.20, Reward=$0.60, Ratio=1:3.0
CRITICAL RULES:
The analysis strictly adheres to Smart Money Concepts, avoiding traditional retail indicators.
The decision is based on visible price action and institutional logic, ensuring a high probability of success.
The risk/reward ratio exceeds the minimum requirement of 2:1, enhancing the trade's viability.
Potential bullish continuation?USD/JPY has bounced off the pivot and could rise to the 1st resistance, which aligns with the 78.6% Fibonacci retracement.
Pivot: 143.37
1st Support: 142.78
1st Resistance: 144.50
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USDJPY H1 I Bearish ReversalBased on the H1 chart, the price is rising toward our sell entry level at 144.15, a pullback resistance that aligns with the 78.6% Fib retracement.
Our take profit is set at 143.48, an overlap support.
The stop loss is set at 144.67, an overlap resistance.
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USDJPY Analysis – Bullish Continuation After Minor PullbackUSDJPY is currently trading around 143.340, and I anticipate a minor pullback into the 143.296 zone, which aligns with a possible bullish order block and discount zone on the H1/H4 timeframe.
This short-term dip could serve as a liquidity sweep or mitigation before price resumes its bullish trend, targeting the 147.381 level — a key area of interest tied to previous highs and potential liquidity above.
I’ll be watching for bullish confirmation (e.g., clean W-pattern, bullish engulfing candle, or break of internal structure) from the 143.296 zone before taking long entries.
🔻 Short-term expectation: Pullback to 143.296
🔼 Primary bias: Bullish continuation
🎯 Upside target: 147.381
📍 Current price: 143.340
📌 Risk Management Reminder: This is not financial advice. Always apply proper risk management:
✔️ Use a minimum of 1:2 RR setups
✔️ Risk no more than 1–2% of your capital per trade
✔️ Wait for clear confirmation before entering
✔️ Protect your account — preservation over prediction
USDJPY| - Weekky OutlookBias: Bullish
HTF Overview (4H):
Price has shown bullish intent by breaching a major internal high and taking out significant sell-side liquidity (SSL) before mitigating the 4H order block below. This suggests a bullish narrative is forming, even though the 4H swing high hasn’t been taken yet.
LTF Confirmation (30M):
Currently showing bearish momentum. I’ll wait for a clean CHoCH to confirm shift in intent. Once price sweeps liquidity and mitigates a valid 30M OB, I’ll look for entries.
Entry Zone:
After liquidity sweep + OB mitigation on 30M (or refinement on 5M), I’ll execute the setup.
Targets:
• Scalp: 5M structure highs
• Short-Term Hold: 30M structure highs
• Extended Hold: 4H structure highs (if price action is strong)
Mindset Note:
Structure tells the story, but price action confirms whether it’s worth riding. Even when structure looks awkward, respect is often still given—so stay fluid, but focused.
Bless Trading!
Bullish bounce off pullback support?USD/JPY has bounced off the support level which is a pullback support and could potentially rise from this level to our take profit.
Entry: 142.63
Why we like it:
There is a pullback support.
Stop loss: 141.91
Why we like it:
There is a pullback support.
Take profit: 144.68
Why we like it:
There is an overlap resistance that lines up with the 38.2% Fibonacci retracement.
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Usdjpy 4Hr chart Analaysis The USD/JPY pair appears to be forming a potential reversal pattern, suggesting a shift from bullish to bearish momentum. The key level of 148.55 is anticipated to act as a turning point, with price potentially heading down toward the 141.647 support area in the near term.
USDJPY FXAN & Heikin Ashi exampleIn this video, I’ll be sharing my analysis of USDJPY, using FXAN's proprietary algo indicators with my unique Heikin Ashi strategy. I’ll walk you through the reasoning behind my trade setup and highlight key areas where I’m anticipating potential opportunities.
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USD/JPY (4H timeframe) shows a clear break 0ut.USD/JPY (4H timeframe) shows a clear break below the ascending trendline and Ichimoku cloud support, suggesting a bearish continuation.
Key Bearish Targets (Based on the chart):
1. First Target Zone:
📉 140.88
This level aligns with previous structure support and is marked as the initial target on the chart.
2. Second Target Zone:
📉 138.85 – 139.00
This is a deeper support zone and is indicated as the next bearish leg if price momentum continues downward.
Summary:
Current Price: ~142.74
Trend: Bearish (Breakdown from trendline + Ichimoku bearish signals)
Target 1: 140.88
Target 2: 138.85
Let me know if you want SL (stop-loss) or entry suggestions.
USDJPY Ascending channel breakout buy strong from demand zone📈 USDJPY Bullish Breakout Alert! 🚀
USDJPY has officially broken out of the descending channel from the 143.800 demand zone — showing strong bullish momentum on the 1H time frame! 🔥
🎯 Technical Targets:
1st Target: 145.000 – Supply Zone 💥
2nd Target: 146.000 – Key Resistance
3rd Target: 148.000 – Major Resistance Level
Momentum is building — bulls are in control! 🐂
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Quantitative Trading Models in Forex: A Deep DiveQuantitative Trading Models in Forex: A Deep Dive
Quantitative trading in forex harnesses advanced algorithms and statistical models to decode market dynamics, offering traders a sophisticated approach to currency trading. This article delves into the various quantitative trading models, their implementation, and their challenges, providing insights for traders looking to navigate the forex market with a data-driven approach.
Understanding Quantitative Trading in Forex
Quantitative trading, also known as quant trading, in the forex market involves using sophisticated quantitative trading systems that leverage complex mathematical and statistical methods to analyse market data and execute trades. These systems are designed to identify patterns, trends, and potential opportunities in currency movements that might be invisible to the naked eye.
At the heart of these systems are quantitative trading strategies and models, which are algorithmic procedures developed to determine market behaviour and make informed decisions. These strategies incorporate a variety of approaches, from historical data analysis to predictive modelling, which should ensure a comprehensive assessment of market dynamics. Notably, in quantitative trading, Python and similar data-oriented programming languages are often used to build models.
In essence, quantitative systems help decipher the intricate relationships between different currency pairs, economic indicators, and global events, potentially enabling traders to execute trades with higher precision and efficiency.
Key Types of Quantitative Models
Quantitative trading, spanning diverse markets such as forex, stocks, and cryptocurrencies*, utilises complex quantitative trading algorithms to make informed decisions. While it's prominently applied in quantitative stock trading, its principles and models are particularly significant in the forex market. These models are underpinned by quantitative analysis, derivative modelling, and trading strategies, which involve mathematical analysis of market movements and risk assessment to potentially optimise trading outcomes.
Trend Following Models
Trend-following systems are designed to identify and capitalise on market trends. Using historical price data, they may determine the direction and strength of market movements, helping traders to align themselves with the prevailing upward or downward trend. Indicators like the Average Directional Index or Parabolic SAR can assist in developing trend-following models.
Mean Reversion Models
Operating on the principle that prices eventually move back towards their mean or average, mean reversion systems look for overextended price movements in the forex market. Traders use mean reversion strategies to determine when a currency pair is likely to revert to its historical average.
High-Frequency Trading (HFT) Models
Involving the execution of a large number of orders at breakneck speeds, HFT models are used to capitalise on tiny price movements. They’re less about determining market direction and more about exploiting market inefficiencies at micro-level time frames.
Sentiment Analysis Models
These models analyse market sentiment data, such as news headlines, social media buzz, and economic reports, to gauge the market's mood. This information can be pivotal in defining short-term movements in the forex market, though this model is becoming increasingly popular for quantitative trading in crypto*.
Machine Learning Models
These systems continuously learn and adapt to new market data by incorporating AI and machine learning, identifying complex patterns and relationships that might elude traditional models. They are particularly adept at processing large volumes of data and making predictive analyses.
Hypothesis-Based Models
These models test specific hypotheses about market behaviour. For example, a theory might posit that certain economic indicators lead to predictable responses in currency markets. They’re then backtested and refined based on historical data to validate or refute the hypotheses.
Each model offers a unique lens through which forex traders can analyse the market, offering diverse approaches to tackle the complexities of currency trading.
Quantitative vs Algorithmic Trading
While quant and algorithmic trading are often used interchangeably and do overlap, there are notable differences between the two approaches.
Algorithmic Trading
Focus: Emphasises automating processes, often using technical indicators for decision-making.
Methodology: Relies on predefined rules based on historical data, often without the depth of quantitative analysis.
Execution: Prioritises automated execution of trades, often at high speed.
Application: Used widely for efficiency in executing repetitive, rule-based tasks.
Quantitative Trading
Focus: Utilises advanced mathematical and statistical models to determine market movements.
Methodology: Involves complex computations and data analysis and often incorporates economic theories.
Execution: May or may not automate trade execution; focuses on strategy formulation.
Application: Common in risk management and strategic trade planning.
Implementation and Challenges
Implementing quantitative models in forex begins with the development of a robust strategy involving the selection of appropriate models and algorithms. This phase includes rigorous backtesting against historical data to validate their effectiveness. Following this, traders often engage in forward testing in live market conditions to evaluate real-world performance.
Challenges in this realm are multifaceted. Key among them is the quality and relevance of the data used. Models can be rendered ineffective if based on inaccurate or outdated data. Overfitting remains a significant concern, where systems too closely tailored to historical data may fail to adapt to evolving market dynamics. Another challenge is the constant need to monitor and update models to keep pace with market changes, requiring a blend of technical expertise and market acumen.
The Bottom Line
In this deep dive into quantitative trading in forex, we've uncovered the potency of diverse models, each tailored to navigate the complex currency markets with precision. These strategies, rooted in data-driven analysis, may offer traders an edge in decision-making.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Critical Channel Watch Begins on the 1-Hour Chart of USDJPY.Hey everyone,
📉 My Latest USDJPY Analysis:
USDJPY is currently moving within a downtrend. If the price breaks below the lower boundary of the parallel channel, our first target level will be 142.910. The most crucial factor here is the downward breakout of that channel—don’t overlook it.
Also, keep a close eye on key economic data releases on the fundamental side, as they could significantly influence your strategy.
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USDJPU 160PIP BAGED LIVE TRADE Japanese Yen sticks to intraday gains; USD/JPY seems vulnerable near multi-week low
The Japanese Yen retains its positive bias against a bearish US Dollar and currently trades near a three-week low touched during the Asian session earlier this Tuesday. The Bank of Japan's (BoJ) Tankan Survey showed that business confidence at large manufacturers in Japan improved for the first time in two quarters during the April-June period.
demand zone spotted... LET THE HUNTING BEGIN!!!📉 USD/JPY 4H Analysis – Demand Zone Revisit Expected
The pair is currently in a retracement phase after tapping into a higher-timeframe supply zone. Let's break down the structure and reasoning behind this setup:
1. Market Structure & Smart Money Footprints
• The chart begins with a clear Break of Structure (BOS) to the upside from a prior low, confirming a bullish shift.
• This upward move was supported by multiple Short-Term Supports (SS) that were respected throughout the bullish trend.
• Price has maintained a general uptrend structure, making higher lows and higher highs, but is now showing signs of a correction.
2. Supply and Demand Zones
• Supply Zone (147.288 – 148.000):
This is the last bearish zone before a sharp sell-off, indicating institutional selling pressure. Price tapped into this zone and has since reacted bearishly — a likely area where smart money took profits or initiated shorts.
• Demand Zone (139.740 – 140.728):
Marked from the origin of the bullish impulse and supported by a previous BOS, this is a critical area where institutional buying may resume. It also aligns with a liquidity sweep and previously unmitigated demand — a key confluence zone for potential longs.
3. Current Market Behavior
• Price is currently declining toward the demand zone, and based on structure, this is likely a healthy retracement.
• The chart suggests a buy limit setup at demand, with a tight stop just below 139.740 and a target near the previous supply reaction.
________________________________________
✅ Trade Idea
• Bias: Bullish from demand
• Entry: Around 140.728
• Stop Loss: Below 139.740
• Take Profit: 147.288 (just before the supply zone)
• Risk-to-Reward: Approx. 1:4
This setup assumes price will respect demand and continue the bullish structure, especially after multiple SS validations and a strong institutional reaction in the past.
🧠 Final Thoughts
This setup reflects classic Smart Money Concept principles:
• Structure shift via BOS
• Entry at unmitigated demand
• Exit just before major supply
• Strong confluence from price history and liquidity sweep zones
Wait for confirmation in the demand zone — a bullish engulfing, internal BOS, or FVG fill could give additional confidence to enter long.
NB: x represents previous liquidity sweep
$$ represents liquidity
bos represents break of structure
CHEERS TO WEALTH!!!
USD/JPY Bearish Flag (30.06.2025)The USD/JPY Pair on the M30 timeframe presents a Potential Selling Opportunity due to a recent Formation of a Bearish Flag Breakout Pattern. This suggests a shift in momentum towards the downside in the coming hours.
Possible Short Trade:
Entry: Consider Entering A Short Position around Trendline Of The Pattern.
Target Levels:
1st Support – 143.40
2nd Support – 142.86
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