Analyzing 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.
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.
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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.