The pair is currently showing signs of potential reversal after a sharp bullish retracement that reached a previously respected supply zone. Price action is reacting to a key area where sellers have shown strength in the past, suggesting that this upward move could be a liquidity grab before a new leg down.
On the 1-hour timeframe, the RSI has entered overbought territory, signaling a possible momentum exhaustion. This aligns with a technical structure where the market has maintained a bearish bias despite the recent recovery rally.
The broader context still supports a downside continuation, especially considering the macro pressure from U.S. monetary policy divergence and the yen’s historical reaction to overextended bullish waves in this pair.
📊 We’re watching for signs of confirmation, such as bearish engulfing patterns or rejections with volume divergence, which could strengthen the bearish thesis in this region.
Patience and discipline remain key — we're not trading the noise, we're trading the reaction to structure.
On the 1-hour timeframe, the RSI has entered overbought territory, signaling a possible momentum exhaustion. This aligns with a technical structure where the market has maintained a bearish bias despite the recent recovery rally.
The broader context still supports a downside continuation, especially considering the macro pressure from U.S. monetary policy divergence and the yen’s historical reaction to overextended bullish waves in this pair.
📊 We’re watching for signs of confirmation, such as bearish engulfing patterns or rejections with volume divergence, which could strengthen the bearish thesis in this region.
Patience and discipline remain key — we're not trading the noise, we're trading the reaction to structure.
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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.