The analysis of EUR/JPY shows the development of a bearish structure, which could offer a good opportunity for a short position. After the price broke the previous local high (BOS), it failed to maintain its bullish momentum and reversed its direction, forming a change of character (ChOCH). This is a key signal for a potential downtrend.
The price is currently in a Fair Value Gap (FVG) zone, which represents an inefficient market movement and often acts as an attraction zone for the price. From there, we could see a reaction that pushes the price downwards.
For this trading strategy to be valid, the price must react to the FVG zone and head towards the lower targets. The main target is the Sell Side Liquidity zone, located around 171.200. This is an area with accumulated stop-losses, which makes it a strong magnetic point for the price.
This trading idea is valid as long as the price does not break the top of the FVG zone and head upwards.
The price is currently in a Fair Value Gap (FVG) zone, which represents an inefficient market movement and often acts as an attraction zone for the price. From there, we could see a reaction that pushes the price downwards.
For this trading strategy to be valid, the price must react to the FVG zone and head towards the lower targets. The main target is the Sell Side Liquidity zone, located around 171.200. This is an area with accumulated stop-losses, which makes it a strong magnetic point for the price.
This trading idea is valid as long as the price does not break the top of the FVG zone and head upwards.
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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.
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.