Price has entered the daily supply zone (red area) between 170.80 and 171.80, showing immediate rejection with a long upper wick — a signal of potential short-term bearish reaction.
The RSI is turning lower, indicating loss of momentum, although it hasn’t reached extreme levels yet.
The current map suggests a technical pullback toward the 169.40–168.50 zone (FVG + dynamic support) before any potential bullish continuation toward 174+.
The overall structure remains bullish, but a correction looks likely due to technical exhaustion and retail positioning.
📊 2. COT Report (JPY Futures – as of 2025-07-01)
Non-Commercials (speculators) reduced long positions on the JPY by -7,779 contracts, and also slightly trimmed shorts → clear sign of position reduction.
Net positioning remains strongly negative (JPY weakness), but it's starting to recover slightly.
Commercials added both longs (+2,830) and shorts (+5,977), indicating indecision but growing interest.
Open interest slightly decreased (–516), though it remains elevated.
👉 The market has not yet reversed, but the JPY downtrend may be approaching exhaustion.
🧠 3. Retail Sentiment
86% of retail traders are short EUR/JPY — a strong contrarian bullish signal.
Average retail short entry: 166.27, while current price is 171.55 → retail traders are trapped and under pressure.
A short squeeze is likely underway or already completed, increasing the risk of a technical correction after distribution.
📅 4. Seasonality
July is historically weak for EUR/JPY:
20Y: -0.35
15Y: -0.49
10Y: -0.18
August tends to be even worse from a seasonal perspective.
This supports the idea of a potential pullback in the coming days or weeks.
Trading Conclusion
Current Bias: Short-term Neutral–Bearish, Medium-term Bullish.
✳️ Potential pullback from 172.30 toward 169.40–168.50
🎯 If price holds and builds clean bullish structure, expect continuation toward 174.00–175.00
❌ Invalidation on daily close below 167.80
The RSI is turning lower, indicating loss of momentum, although it hasn’t reached extreme levels yet.
The current map suggests a technical pullback toward the 169.40–168.50 zone (FVG + dynamic support) before any potential bullish continuation toward 174+.
The overall structure remains bullish, but a correction looks likely due to technical exhaustion and retail positioning.
📊 2. COT Report (JPY Futures – as of 2025-07-01)
Non-Commercials (speculators) reduced long positions on the JPY by -7,779 contracts, and also slightly trimmed shorts → clear sign of position reduction.
Net positioning remains strongly negative (JPY weakness), but it's starting to recover slightly.
Commercials added both longs (+2,830) and shorts (+5,977), indicating indecision but growing interest.
Open interest slightly decreased (–516), though it remains elevated.
👉 The market has not yet reversed, but the JPY downtrend may be approaching exhaustion.
🧠 3. Retail Sentiment
86% of retail traders are short EUR/JPY — a strong contrarian bullish signal.
Average retail short entry: 166.27, while current price is 171.55 → retail traders are trapped and under pressure.
A short squeeze is likely underway or already completed, increasing the risk of a technical correction after distribution.
📅 4. Seasonality
July is historically weak for EUR/JPY:
20Y: -0.35
15Y: -0.49
10Y: -0.18
August tends to be even worse from a seasonal perspective.
This supports the idea of a potential pullback in the coming days or weeks.
Trading Conclusion
Current Bias: Short-term Neutral–Bearish, Medium-term Bullish.
✳️ Potential pullback from 172.30 toward 169.40–168.50
🎯 If price holds and builds clean bullish structure, expect continuation toward 174.00–175.00
❌ Invalidation on daily close below 167.80
Trade closed: stop reached
A small mistake, in trading is important to maintain focus and stay disciplined. I'm ready for the next week. Controlling your emotions in trading is a big challenge, but the results will be amazing.
📈 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.