EURJPY Bullish Setup : EURJPY Forecast + Demand Zone🧠 Introduction: What's Happening on the Chart?
Today’s analysis on EURJPY is built on the MMC trading framework, which emphasizes the identification of institutional supply and demand zones, reaction points, QFL patterns, and volume bursts to map out high-probability trading paths.
We are currently observing a market in a corrective phase following a significant bearish drop. However, the presence of a major demand zone, along with a positive bullish pattern, suggests potential upside reversal or at least a short-term retracement.
🔍 Technical Breakdown – Zone by Zone
🔻 1. The Drop from 2x Supply Zone
EURJPY experienced a significant decline from the 173.60–174.00 area, which acted as a 2x confirmed supply zone.
Sellers took control with strong bearish candles that broke through previous minor support levels.
This drop was impulsive, showing momentum-driven selling, often linked with institutional activity.
🟩 2. Demand Reaction at Major Zone
Price entered a key demand zone marked in green (170.80–171.00), where historically buyers have stepped in.
A "Volume Burst" is visible here—large volume candles with long wicks to the downside, which typically indicate accumulation.
A positive pattern (possibly engulfing or a pin bar structure) has formed, signaling a potential bullish reversal or relief rally.
🧱 3. QFL Structure (Quantum Flat Line)
The chart highlights a QFL base, where the price consolidates after an initial drop, then continues lower before a sharp bounce.
QFL is often used to identify trap zones where retail traders are shaken out, and smart money enters.
The recent bounce from the QFL base suggests smart money might be accumulating for a reversal move.
📐 Key Levels and Zones
Type Zone/Level Role
🔵 Volume Burst Area ~170.80–171.00 Aggressive buyer entry; accumulation zone
🟢 Major Demand 170.80–171.20 Key structural low supporting bullish bias
🟠 SR Flip Zone 171.80–172.00 Crucial breakout/retest level
🔴 Minor Resistance 172.60–173.00 Short-term pullback zone
🟥 2x Supply 173.60–174.00 Strong reversal point; ideal target
🔁 Scenarios to Watch
📈 Scenario 1: Bullish Breakout and Rally (Blue Box 1)
If price breaks above 172.00, we expect:
A potential retest (bullish confirmation).
Continuation toward minor resistance at 173.00, and possibly the 2x supply zone at 174.00.
This aligns with the positive pattern formed at the base and the idea of a market rotation from bearish to bullish structure.
📉 Scenario 2: Rejection and Retest of Lows (Blue Box 2)
If the price fails to sustain above 172.00, sellers may step in:
Price could revisit the major demand zone again or even break down to 170.50.
This would invalidate the bullish setup in the short term and imply a larger continuation of the bearish trend.
🧠 Strategic Insights (MMC-Based Thinking)
The MMC approach teaches us to mirror the market’s emotion and behavior.
In this case, we see signs of:
Panic selling → smart money accumulation.
Institutional traps (QFL drop) → bullish absorption.
Traders applying MMC would anticipate reactive setups at the SR Flip Zone to determine next directional bias.
💡 Trade Ideas (For Educational Purposes Only)
Strategy Entry SL TP1 TP2
Aggressive Long 171.30–171.50 170.70 172.50 173.50
Breakout Retest Long 172.10 (after breakout) 171.50 173.00 174.00
Sell on Rejection 172.00 (bearish confirmation) 172.60 171.00 170.40
📌 Conclusion & Final Thoughts
EURJPY is showing a potential bullish reversal setup from a well-defined demand zone, supported by volume bursts and positive price action patterns. However, the SR Zone at 172.00 remains the key pivot—how the price reacts here will determine whether we see a deeper pullback or a continuation to test upper resistance levels.
Stay flexible and responsive. Let the market give confirmation before execution. As always, follow proper risk management and trade the reaction, not the prediction.
