🔹 Technical Context
Price reacted with a strong bullish wick in the 169.50–170.30 demand zone, signaling clear buyer defense. The RSI bounced from weakness but remains subdued, showing limited momentum.
📍 Current price action suggests a potential retest of the 172.50–173.30 area, which aligns with a supply zone, before a possible directional decision is made.
🗓️ Seasonality
Historically, August tends to be bearish for EUR/JPY:
5Y average: -0.48%
10Y average: -0.12%
15Y/20Y averages: -1.3% and -1.2%
📉 Seasonality indicates potential weakness, especially in the second half of the month.
🪙 COT Report (EURO & YEN) – July 22
EURO: Strong long accumulation by non-commercials (+6,284) and commercials (+17,575)
JPY: Net decline in both longs (-1,033) and shorts (-4,096), with a drop in total open interest
🧠 The market is heavily positioned on the Euro, while Yen positioning is fading. This creates a divergence between the two currencies, favoring a short-term technical bounce on EUR/JPY, though downside risks remain in the mid-term.
📉 Sentiment
82% of retail traders are short EUR/JPY
Volume: 1,564 lots short vs 352 lots long
📣 This extreme sentiment imbalance suggests a potential short-term squeeze against retail traders.
📊 Market Mood & DPO
Overall mood: Neutral
DPO at -9.0, Wyckoff score below 50
Momentum remains weak, but not showing a clear divergence.
🧩 Operational Summary
Retest of the 172.50–173.30 supply zone
Likely exhaustion in that area
Ideal setup: rejection + bearish confirmation
→ Targets: 170.30, then 169.00
Price reacted with a strong bullish wick in the 169.50–170.30 demand zone, signaling clear buyer defense. The RSI bounced from weakness but remains subdued, showing limited momentum.
📍 Current price action suggests a potential retest of the 172.50–173.30 area, which aligns with a supply zone, before a possible directional decision is made.
🗓️ Seasonality
Historically, August tends to be bearish for EUR/JPY:
5Y average: -0.48%
10Y average: -0.12%
15Y/20Y averages: -1.3% and -1.2%
📉 Seasonality indicates potential weakness, especially in the second half of the month.
🪙 COT Report (EURO & YEN) – July 22
EURO: Strong long accumulation by non-commercials (+6,284) and commercials (+17,575)
JPY: Net decline in both longs (-1,033) and shorts (-4,096), with a drop in total open interest
🧠 The market is heavily positioned on the Euro, while Yen positioning is fading. This creates a divergence between the two currencies, favoring a short-term technical bounce on EUR/JPY, though downside risks remain in the mid-term.
📉 Sentiment
82% of retail traders are short EUR/JPY
Volume: 1,564 lots short vs 352 lots long
📣 This extreme sentiment imbalance suggests a potential short-term squeeze against retail traders.
📊 Market Mood & DPO
Overall mood: Neutral
DPO at -9.0, Wyckoff score below 50
Momentum remains weak, but not showing a clear divergence.
🧩 Operational Summary
Retest of the 172.50–173.30 supply zone
Likely exhaustion in that area
Ideal setup: rejection + bearish confirmation
→ Targets: 170.30, then 169.00
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
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.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
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.