#045: USD/JPY Long Investment Opportunity
The USD/JPY is in a structured uptrend on the higher timeframe, with the price recently completing a liquidity clearing at the lows before showing signs of a reaction.
After a period of orderly bearish pressure, the market absorbed supply in dynamic support areas, without producing any significant structural breakout. This behavior is typical of stop-hunting maneuvers in a bullish environment, where the decline does not represent distribution but rather a replenishment of institutional long positions.
The subsequent rebound highlights:
Maintained structure of higher highs and higher lows over the medium term
Absence of abnormal downward accelerations
Price return above equilibrium and value areas
From a price action perspective, the recent decline shows characteristics of a corrective pullback, not a reversal. Volumes are consistently accompanying the movement, suggesting an accumulation phase rather than a market exit.
The environment remains favorable for a continuation of the main movement, with the price tending to re-engage with the dominant direction after eliminating the weakest positions. The current setup therefore favors trend-aligned trades, executed after, not during, manipulation.
In summary, the market is exhibiting a classic scenario:
primary bullish trend
controlled technical retracement
reabsorption of liquidity below the lows
resumption of main directional pressure
As long as the underlying structure remains intact, the trading bias remains oriented toward the continuation of the movement, with expectations of extension toward higher liquidity areas.
Long
