I have reason to believe that JPY will get more bearish because it hasn't fully entered in it's discount zone. To support this theory, i see weak volume and divergence on the stochastic. LBEP- low probability entery price
BEP- best entery price
If you are ,then do not let this move of inefficiency go to waste. catch this swing. At first ,please pay close attention to price for a brief consolidation and liquidity grab(below the trendline). After liquidity grab,a bullish momentum is expected for price to fill up the missing gap of efficiency. Use proper risk management setup.
A general pause in the daily bull trend of the USDJPY pair can be observed on the hourly time frame. Price attempted to correct the inefficient price action by entering the zone twice, precisely 50% of the move on to occasions. From my analysis price will attempt to correct 80% of the ineffieciency on its third trial.
I see a pull back of trend to the 50% of the candle. A hidden divergence to confirm a down move exists and as well the existence of an imbalance in the trend. First Price of entry Interest (POI) is at the 50%, Stop loss at the tip of the resistance zone and take profit at the nearest bull order block.
We may see a pullback move on this pair. Price will consolidates at the former resistance zone to grab liquidity to the down side before a bull momentum. That is one theory. Another theory is that its likely for price to go back to the ST-zone to test if there are still bears in the market.
What do i think?
let price pull back into the former zone of...
Though the risk to reward seems small,its certainly a trend to watch out for. The trend seems to be going in line with Wyckoffian Accumulation technique,hence we should expect a bearish move to the downside. Price may try to take liquidity to he upside before going down. Lets observe the trend.
Based on my theory, I believe price wants to re-enter the imbalance formed, there's an inefficiency which price tried to correct but not completely and I believe it will want to attempt to retest it again.
Daily and 4H TF point bullish.
Rectangular box suggest point of interest, as a position of price inefficiency and imbalance.
price will be drawn into this zone for a retest and go bearish
Volume shows a lack of activity, there price to diverge or consolidate. But higly likely for price to retrace and retest previous supply zone before falling back
