USDJPY Forming Bullish Reversal | MMC Analysis + Target🧠 Chart Overview (2H Timeframe)
🔸 1. Head and Shoulders Inverse Pattern – MMC Bullish Blueprint
The chart beautifully shows an Inverse Head & Shoulders pattern, one of the most powerful reversal signals under MMC logic:
Left Shoulder: Formed after the initial drop and quick recovery.
Head : Deep liquidity grab and reversal from the lowest point (demand zone).
Right Shoulder: Higher low structure, indicating reduced selling pressure and shift in momentum.
This pattern is forming around a previous liquidity zone, which makes it more valid and aligned with smart money behavior.
🔸 2. Retesting Zone – Critical MMC Demand Area
Price is now retesting a highlighted demand zone, which acted as the springboard for the previous bullish move:
Bullish Pattern marked aligns with MMC’s concept of “Return to Origin”.
This zone also sits just above the right shoulder, confirming that buyers are defending aggressively.
If this level holds, we may see a strong continuation move to the upside.
🔸 3. Previous Reversal Zone (Supply) – Next Target Area
Marked in light green, this area is the next critical resistance:
Acts as liquidity target for institutions if price rallies.
Historically acted as a major reversal point.
Price is likely to show reactions or profit-taking behavior here.
Once broken and retested, it becomes a new support for further upside continuation (as marked on the chart).
🔸 4. Dual Scenarios – Bullish vs Bearish Pathways
Your chart correctly outlines two strategic possibilities:
✅ Bullish Scenario:
Price respects demand zone.
Breaks above previous reversal zone (149.000+).
Bullish continuation toward 149.800–150.500 range.
MMC tip: “If it goes bullish, use previous demand or double it” = Add confluence or stack demand zones for scale-in entries.
❌ Bearish Scenario:
If price breaks below retesting zone, bullish invalidation triggers.
Look to the previous all supply zone (Zone Pattern Must) for next reaction.
This scenario reflects smart money rejection of upside continuation.
🗂️ MMC Structural Elements Identified:
Zone/Pattern Role in Analysis
Inverse H&S Trend reversal signal
Retesting Zone Demand/entry area
Previous Reversal Zone First key resistance / next liquidity pool
Supply Zone Below Target in case of downside breakdown
MMC Logic Follow price structure, fakeouts, demand/supply traps
📈 Summary Outlook:
USDJPY is showing a technical bullish structure backed by MMC-based price psychology. The current pullback into a demand zone gives traders an excellent R:R opportunity for long positions, targeting higher zones upon breakout confirmation.
🟩 If bullish, breakout >149.000 will likely lead toward 150.000+
🟥 If bearish, breakdown <147.600 opens doors to deeper drop toward 146.000 zone (watch for reversal pattern).
🔑 Key Levels to Watch:
Type Level Range Notes
Support 147.600–147.800 Current retesting demand
Resistance 148.800–149.300 Previous Reversal Zone (Profit booking area)
Higher Resistance 150.500+ Final upside objective
Breakdown Zone <147.500 Flip to bearish scenario
