Well, in the long therm we are still in a down trend, and the price is approaching a resistency line of this down channel, this is the background that we need to analyse too.
Two bars has a big impact in this chart, the first one is the up bar ultra wide spread with ultra high volume seen back to 08/26 at the 13:00pm, this up bar breakout all of the previous tops and the follow bar closes up, showing that this is actually strenght and not weakness (because a up bar with ultra high volume always represent weakness , but in this case, you got a previous channel in the left, and the professionals where bullish (probably testing if you go to analyse the channel). We mark that up bar (high and low) and project those lines to the right.
Later to this bar, comes the second ones, that is a up bar too, with wide spread too and of course, ultra high volume, in this case, closing at the middle or off the high, so, we now know that there is some supply present in this bar, confirmed at the next down bar, like we do in the previous bar, we mark the high and low and project those lines to the right.
After this second bar, the price comes down with what appear to be a gotcha bar (down bar, ultra wide spread, ultra high volume) that looks exactly like the opposite of the absorption volume bar seen in the background (the first climatic bar that we mark), but, when the price approach the high of this bar, you see that the volume gets low (a test bar) and the next bar is a up bar that confirms this, and then we got a reaction, a pullback to the same area and a re-test (by the way, making higher lows) so we now know that the market its not ready to breakout the high of the first climatic bar, and we confirm that after we see the testing on the down bar seen today at the 21:00PM (we need to wait for confirmation of course).
So, there is some buying in the USDJPY 4H chart, but be aware because we are in an overall down trend and currently in a over-bought zone, so, for me, i will wait to have a breakout of the 103.400 level and then a up reaction, and pullback with low volume testing this zone.
Two bars has a big impact in this chart, the first one is the up bar ultra wide spread with ultra high volume seen back to 08/26 at the 13:00pm, this up bar breakout all of the previous tops and the follow bar closes up, showing that this is actually strenght and not weakness (because a up bar with ultra high volume always represent weakness , but in this case, you got a previous channel in the left, and the professionals where bullish (probably testing if you go to analyse the channel). We mark that up bar (high and low) and project those lines to the right.
Later to this bar, comes the second ones, that is a up bar too, with wide spread too and of course, ultra high volume, in this case, closing at the middle or off the high, so, we now know that there is some supply present in this bar, confirmed at the next down bar, like we do in the previous bar, we mark the high and low and project those lines to the right.
After this second bar, the price comes down with what appear to be a gotcha bar (down bar, ultra wide spread, ultra high volume) that looks exactly like the opposite of the absorption volume bar seen in the background (the first climatic bar that we mark), but, when the price approach the high of this bar, you see that the volume gets low (a test bar) and the next bar is a up bar that confirms this, and then we got a reaction, a pullback to the same area and a re-test (by the way, making higher lows) so we now know that the market its not ready to breakout the high of the first climatic bar, and we confirm that after we see the testing on the down bar seen today at the 21:00PM (we need to wait for confirmation of course).
So, there is some buying in the USDJPY 4H chart, but be aware because we are in an overall down trend and currently in a over-bought zone, so, for me, i will wait to have a breakout of the 103.400 level and then a up reaction, and pullback with low volume testing this zone.