“USD/JPY 4H-30M Precision Trade Setup: Reversal in Premium Zone”
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This trade Concept, focuses on the USD/JPY pair, using a top-down analysis to identify a reversal opportunity from a higher timeframe premium zone down to a key discount area.
4H Analysis
On the 4H timeframe, the market has been in a bullish rally, but it reached a critical supply zone marked near 158.200. This zone occur simultaneously with an inducement (IDM), where liquidity was likely trapped as buyers entered early into the trend. • Bearish Clues: The price structure has shifted from higher highs (HH) to lower lows (LL), signaling a weakening bullish trend and a potential reversal.
30M Analysis
Dropping to the 30M chart, the price maintains a bearish structure, respecting the key IDM zone. Inducements and liquidity traps are evident, supporting the intention of a price rejection and continuation downward. The entry was refined within the 156.500 area for precision.
Trade Parameters • Entry: 156.500 • Profit Target (TP): 153.725 • Stop Loss (SL): 156.700 (above the supply zone to account for volatility)
Expectations: I anticipate price to continue breaking lower, targeting liquidity at previous swing lows (154.000) before heading to the higher timeframe demand zone around 152.300. The bearish momentum aligns with the overall 4H and 30M structures, making this a high-probability trade.
Let me know your thoughts on this setup or if you have questions about the analysis. Bless trading!
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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.