🧠 Contextual Overview:
EURJPY has been on a strong long-term bullish rally, fueled by institutional demand and consistent volume expansion patterns. This pair is approaching a critical macro resistance/reversal zone around the 175–176 level, where historically large players have shown interest in redistributing or taking profit.
This analysis uses the MMC (Market Mechanics Concept) integrated with SMC (Smart Money Concepts) to provide a complete perspective on price structure, order flow, and volume behavior.
📊 Structural Breakdown:
🔹 1. Volume Expansion as a Leading Indicator
Volume precedes price — this is a foundational MMC principle.
The recent aggressive impulse to the upside is backed by clear volume expansion visible on higher time frames.
This type of movement indicates smart money accumulation and commitment, rather than retail-driven volatility.
A key insight: Volume Expansion typically signals trend continuation, not reversal—unless a liquidity grab or divergence shows up in reversal zones.
🔹 2. Break of Structure (BOS) Confirms Trend Continuation
A clear BOS occurred when price violated previous swing highs around the 165–167 range.
This BOS suggests a new bullish leg is forming, confirming the market has transitioned from consolidation (accumulation) to distribution (markup phase).
🔹 3. Current Price Path: Heading into a Key Reversal Zone (175–176)
This zone has been mapped based on previous supply imbalances and historical resistance.
Price may tap into this zone before we see either:
A clean continuation above (indicating absorption of supply), or
A rejection or smart money sell-off pattern (distribution, divergence, or exhaustion candles).
Institutions tend to execute significant moves in these areas — watch for liquidity sweep traps and break-of-structure (BOS) on lower timeframes for confirmation.
🧱 Support Zones & Safety Net:
🔸 Major Support: 155–157 Zone
This is a historically significant demand block, respected multiple times since 2023.
A drop into this region could offer a prime long-term swing entry, should price reject the reversal zone.
Also acts as invalidity for current bullish structure. A weekly close below this would signal a potential trend shift or deeper correction.
📉 Technical Patterns & Confluences:
Trendline Breakout + Retest occurred from 2024 into early 2025. This is a classic break-and-retest continuation pattern, confirming bullish interest from smart money.
Price consolidated (reaccumulation) and exploded upward with volume expansion, aligning with Wyckoff theory’s markup phase.
Strong candles with minimal upper wicks = clear sign of institutional commitment.
🎯 Trade Strategy & Scenarios:
🟢 Bullish Continuation Scenario:
If price breaks above 176.000 with volume and closes weekly bullish, expect continuation toward 180.00+ in coming months.
Watch for:
Clean BOS above the reversal zone
Volume expansion confirmation
Retest of breakout level (176–174) for safe re-entry
🔴 Bearish Rejection Scenario:
If price rejects the reversal zone with bearish engulfing or divergence, expect a retracement back toward 165–162 short-term, and possibly 157–155 long-term.
Lower time frame structure shift (BOS to the downside) will confirm early exit from bulls or reversal setups for bears.
🧠 Psychological Perspective:
Smart Money uses reversal zones to entice late buyers before triggering liquidity grabs.
Reversal zones serve as liquidity magnets, often leading to false breakouts before true direction is revealed.
Retail traders often buy into strength at these levels, providing liquidity for institutional exits.
📌 Summary:
✅ Trend: Strong bullish
✅ Structure: Clean BOS with volume confirmation
✅ Next Key Level: 175–176 (Reversal Zone)
✅ Strategy: Monitor for rejection/continuation; align with volume + structure
✅ Volume Behavior: Expansion supports trend continuation
🔖 Final Thoughts:
The EURJPY pair presents a highly educational and strategic opportunity. Whether you trade intraday or swing, this zone (175–176) will define the market direction for the next few months. Use volume, structure shifts, and institutional behavior to guide your trades, not just candlestick patterns.
EURJPY has been on a strong long-term bullish rally, fueled by institutional demand and consistent volume expansion patterns. This pair is approaching a critical macro resistance/reversal zone around the 175–176 level, where historically large players have shown interest in redistributing or taking profit.
This analysis uses the MMC (Market Mechanics Concept) integrated with SMC (Smart Money Concepts) to provide a complete perspective on price structure, order flow, and volume behavior.
📊 Structural Breakdown:
🔹 1. Volume Expansion as a Leading Indicator
Volume precedes price — this is a foundational MMC principle.
The recent aggressive impulse to the upside is backed by clear volume expansion visible on higher time frames.
This type of movement indicates smart money accumulation and commitment, rather than retail-driven volatility.
A key insight: Volume Expansion typically signals trend continuation, not reversal—unless a liquidity grab or divergence shows up in reversal zones.
🔹 2. Break of Structure (BOS) Confirms Trend Continuation
A clear BOS occurred when price violated previous swing highs around the 165–167 range.
This BOS suggests a new bullish leg is forming, confirming the market has transitioned from consolidation (accumulation) to distribution (markup phase).
🔹 3. Current Price Path: Heading into a Key Reversal Zone (175–176)
This zone has been mapped based on previous supply imbalances and historical resistance.
Price may tap into this zone before we see either:
A clean continuation above (indicating absorption of supply), or
A rejection or smart money sell-off pattern (distribution, divergence, or exhaustion candles).
Institutions tend to execute significant moves in these areas — watch for liquidity sweep traps and break-of-structure (BOS) on lower timeframes for confirmation.
🧱 Support Zones & Safety Net:
🔸 Major Support: 155–157 Zone
This is a historically significant demand block, respected multiple times since 2023.
A drop into this region could offer a prime long-term swing entry, should price reject the reversal zone.
Also acts as invalidity for current bullish structure. A weekly close below this would signal a potential trend shift or deeper correction.
📉 Technical Patterns & Confluences:
Trendline Breakout + Retest occurred from 2024 into early 2025. This is a classic break-and-retest continuation pattern, confirming bullish interest from smart money.
Price consolidated (reaccumulation) and exploded upward with volume expansion, aligning with Wyckoff theory’s markup phase.
Strong candles with minimal upper wicks = clear sign of institutional commitment.
🎯 Trade Strategy & Scenarios:
🟢 Bullish Continuation Scenario:
If price breaks above 176.000 with volume and closes weekly bullish, expect continuation toward 180.00+ in coming months.
Watch for:
Clean BOS above the reversal zone
Volume expansion confirmation
Retest of breakout level (176–174) for safe re-entry
🔴 Bearish Rejection Scenario:
If price rejects the reversal zone with bearish engulfing or divergence, expect a retracement back toward 165–162 short-term, and possibly 157–155 long-term.
Lower time frame structure shift (BOS to the downside) will confirm early exit from bulls or reversal setups for bears.
🧠 Psychological Perspective:
Smart Money uses reversal zones to entice late buyers before triggering liquidity grabs.
Reversal zones serve as liquidity magnets, often leading to false breakouts before true direction is revealed.
Retail traders often buy into strength at these levels, providing liquidity for institutional exits.
📌 Summary:
✅ Trend: Strong bullish
✅ Structure: Clean BOS with volume confirmation
✅ Next Key Level: 175–176 (Reversal Zone)
✅ Strategy: Monitor for rejection/continuation; align with volume + structure
✅ Volume Behavior: Expansion supports trend continuation
🔖 Final Thoughts:
The EURJPY pair presents a highly educational and strategic opportunity. Whether you trade intraday or swing, this zone (175–176) will define the market direction for the next few months. Use volume, structure shifts, and institutional behavior to guide your trades, not just candlestick patterns.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Related publications
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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
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.