Market Structure & CHoCH (Change of Character) • The market has shown a bearish CHoCH, indicating a shift from a bullish trend to a potential bearish move. • A previous higher high (HH) failed to sustain, leading to lower highs (LH) and suggesting distribution.
Supply & Demand Zones • A key supply zone is present near the previous high, where price experienced a strong rejection. • The demand zone around 166.423 is currently being tested. A break below this level could lead to further downside.
Liquidity & Smart Money Perspective • Liquidity sweep occurred near the previous high, trapping buyers before price reversed. • Below 166.423, there is sell-side liquidity, which Smart Money might target for a deeper move down.
Key Fibonacci & Imbalance Zones • The 166.423 level aligns with a possible 0.618 Fibonacci retracement, making it a key decision point. • Imbalances (FVGs) below the current price suggest that the market may fill these inefficiencies before any major reversal.
Bearish Targets • If 166.423 breaks, next potential downside targets: • 158.000 (previous support zone & liquidity pool) • 154.000 (institutional level & confluence zone)
Trade Setup (Short Bias) • Entry: After a confirmed break & retest of 166.423 or a premium retracement to a lower timeframe supply zone. • Stop Loss: Above the recent swing high or supply zone. • Take Profit: First target 158.000, extended target 154.000.
💡 Final Thought: The CHF/JPY pair shows bearish momentum under ICT principles, with Smart Money likely targeting liquidity below current levels. However, confirmation from lower timeframes (H4/H1) is advised before execution. 🚀
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.