USDJPY Top-Down Analysis 02.05.19 #FOREX Monthly
Price has rejected the Monthly Disturbance Level @ 105.50 on separate occasions. The first time for a few months and now just a quick rejection.
The long wick tells us that sellers' momentum was lost dramatically and buyers took over for the majority of the month.
Sell orders were filled when price came to the Monthly Disturbance Level @ 105.50. This was a direct cause of December's bearish monthly engulfing beneath support.
We are in an uptrend, so the wick gives us a heads up on buying opportunities for the year.
Weekly
Market structure tells us that we're in an uptrend.
Currently rejecting the Weekly Disturbance Level @ 109.875.
Last week's bearish movement within the week induced plenty of sellers. Liquidity was captured therefore leaving a long wick and bringing more buyers into the market, institutions are now buying.
A close above the Weekly Disturbance Level will create momentum for buyers. We will look for a healthy buy after a pullback and lower time frame confirmation.
Daily
Price rejected the Weekly Disturbance Level and the daily candle ultimately closed beneath the consolidation range. Price continued to the downside as it normally would after a close of that type, however, since we're in an uptrend, the end of the week shot back up and the weekly candle demonstrated the true bullish direction and sellers' exhaustion.
After we broke above 109, price rose to the next Weekly Disturbance Level, rejected that with momentum to the downside, which was the "retest" at the Daily Disturbance Support Level @ 108.625, then printing a reversal candlestick pattern.
We're back at the Weekly Disturbance Level (109.875), how price responds to this level and how momentum prints on lower time frames will give us an indication whether we're buying yet.
4H
Market structure shows us an uptrend.
Consolidation doesn't give us enough confirmation for any entries.
A 4H close beneath current support would prepare for sells after a pullback.
Confirm on smaller timeframes.
Could see price shoot back to 109, reject the 4H Disturbance Level.
1H
Rejecting Weekly Disturbance Level, however could rise to accumulate buy orders.
The initial high set for this range was quickly made and dropped. Could be a liquidity ZONE. RESPOND TO HOW PRICE MOVES THERE.
If a sell opportunity presents itself, TP @ 109.
If the buy opportunity presents itself based off of 4H confirmations as well, TP @ 110.40 and the next Daily Disturbance Level.
If price drops and you miss the move, wait for how price responds around 109 to enter Swing Buy Entries.
