Let’s break down the analysis in detail:
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1. Key Zones & Market Structure
You've identified important supply and demand zones:
Supply Zone (around 158.886):
Price hit this zone and sharply reversed. You've marked it with a yellow box, showing a strong area of sellers.
This is a major resistance zone that was tested twice, forming a possible double top structure.
Demand Zone (around 139.694 - 139.576):
This level previously acted as a strong support.
Price reacted here again, which might indicate bullish interest. You marked this zone well with a yellow box.
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2. Market Reaction & Rejection Points
In the second image, you circled:
Major highs and lows, showing previous price reactions.
These marks point out liquidity zones—areas where price likely took out stop-losses before reversing.
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3. Price Action Narrative
Here’s the likely narrative from your analysis:
Uptrend into Supply Zone (158.886) → Rejection → Strong bearish move.
Price finds support in Demand Zone (139.694) → Rejection wick → Signs of a bullish reversal.
Current Price (around 142.9) is pushing back into a potential minor resistance (possibly a breaker or previous support turned resistance around 143–145 zone).
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4. Timeframes Used
You're using both daily (1D) and 4-hour (4H) timeframes.
The 4H chart helps you zoom into entry confirmations (e.g., rejections, liquidity grabs), while the 1D gives you overall structure and key zones.
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5. Trade Opportunity Analysis
Based on this, a typical analysis conclusion could be:
> “The price of USD/JPY has reached a significant daily demand zone (around 139.7) where historical price action shows strong buying interest. Price has formed a potential higher low and is showing bullish signs, including a strong rejection wick and a recovery back above minor resistance. If price breaks and holds above the 143–145 zone, the next target could be the mid-resistance at 154.793, and eventually retest the supply zone around 158.886, depending on macro conditions and momentum.”
---
1. Key Zones & Market Structure
You've identified important supply and demand zones:
Supply Zone (around 158.886):
Price hit this zone and sharply reversed. You've marked it with a yellow box, showing a strong area of sellers.
This is a major resistance zone that was tested twice, forming a possible double top structure.
Demand Zone (around 139.694 - 139.576):
This level previously acted as a strong support.
Price reacted here again, which might indicate bullish interest. You marked this zone well with a yellow box.
---
2. Market Reaction & Rejection Points
In the second image, you circled:
Major highs and lows, showing previous price reactions.
These marks point out liquidity zones—areas where price likely took out stop-losses before reversing.
---
3. Price Action Narrative
Here’s the likely narrative from your analysis:
Uptrend into Supply Zone (158.886) → Rejection → Strong bearish move.
Price finds support in Demand Zone (139.694) → Rejection wick → Signs of a bullish reversal.
Current Price (around 142.9) is pushing back into a potential minor resistance (possibly a breaker or previous support turned resistance around 143–145 zone).
---
4. Timeframes Used
You're using both daily (1D) and 4-hour (4H) timeframes.
The 4H chart helps you zoom into entry confirmations (e.g., rejections, liquidity grabs), while the 1D gives you overall structure and key zones.
---
5. Trade Opportunity Analysis
Based on this, a typical analysis conclusion could be:
> “The price of USD/JPY has reached a significant daily demand zone (around 139.7) where historical price action shows strong buying interest. Price has formed a potential higher low and is showing bullish signs, including a strong rejection wick and a recovery back above minor resistance. If price breaks and holds above the 143–145 zone, the next target could be the mid-resistance at 154.793, and eventually retest the supply zone around 158.886, depending on macro conditions and momentum.”
Disclaimer
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.
Disclaimer
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.