USDJPY COT and Liquidity AnalysisCOT Report Analysis:
Overal we can see strong bearish sentiment in the COT.
and price will most likely continue lower - in the longterm.
Because those short must be closed one day and it will be below the lows.
Also if Market makers wants to build longs they will be also doing it below the
lows. For new there is forming counter trend buy setup which I will probably take
but its not point of this sentiment analysis. This is bigger picture view and if Market
makers are bearish my longs countertrend trades will be taken with 1/2 risk than usually
/b]
Hey what up traders welcome to the COT data and Liquidity report. This is a big part of my FX Trading. Im always trying to trade with the Big players so knowing their positions is good thing.
Please be aware that institutions report data to the SEC on Tuesdays and data are reported on Fridays - so again we as retail traders have disadvantage, but there is possibility to read between the lines. Remember in the report is what they want you to see, that's why mostly price reverse on Wednesday after the report so their cards are hidden as long as possible. However if the trend is running you can read it and use for your advantage.
I created this simple free indicator which you can find in the my scripts. It's highlighting the day of the real report - Tuesday.
Here is the tip if the level has confluence with the high volume on COT it can be strong support / Resistance.
Analysis done on the Tradenation Charts
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
— David Perk aka Dave FX Hunter ⚔️
JPYUSD trade ideas
USDJPY – Potential Volatility AheadUSDJPY started the week with a 1.3% fall on Monday, where it fell from opening levels around its weekly highs at 143.88, to a low at 141.92 and has since stayed relatively quiet. However, that could all change as we move through towards Friday, as FX markets move into a 3-day period packed with important scheduled events.
Risk sentiment towards US assets, and USDJPY in particularly, could be impacted by todays preliminary US Q1 GDP release at 1330 BST, which could indicate whether the US economy experienced a bigger slowdown at the start of 2025 than initially anticipated.
Then, later in the day the Fed’s preferred gauge of inflation, the PCE Index is released at 1500 BST, and this is followed by the earnings updates from US technology giants Microsoft and Meta later in the evening.
If that wasn’t enough to potentially increase USDJPY volatility, the Bank of Japan (BoJ) will post its interest rate decision early on Thursday morning. Although no change is expected due to the current uncertain tariff impacted climate and on-going trade deal negotiations with the US, the press conference led by BoJ Governor Ueda could contain some market moving commentary.
This all culminates on Friday’s US Non-farm Payrolls update at 1330 BST, where all eyes may well be focused on the unemployment rate print, currently 4.2%, to see if the US labour market is weakening, which if it is, could open the possibility of Fed rate cuts.
Technical Update: 144.06 Resistance Holds Latest Recovery
Having approached 139.58, the September 16th 2024 low trade, USDJPY has seen a recovery in price. However it could be argued, this appears a reaction to what were likely over-extended downside conditions, in place after the 7.50% decline from 151.21, the March 28th 2025 high.
Importantly, latest price strength has been held and so far, reversed by 144.06, the 38.2% Fibonacci retracement of March 28th to April 22nd weakness, which traders are likely to continue to focus on, as a potential resistance.
The BoJ announcement and data releases this week have potential to be important sentiment drivers for USDJPY, and we must be aware of support and resistance levels that may help us gauge the next direction of future price moves.
Resistance Levels:
As we have said, so far, recent recovery themes have been unable to break above 144.06 retracement resistance, which will likely be an area that needs to give way on a closing basis to suggest possibilities of a more extended phase of price strength.
While much will depend on the market’s reaction to up and coming events and future price trends, 144.06 closing breaks might suggest scope towards 145.43 the higher 50% Fibonacci level, even 146.80, the 62% retracement.
Support Levels:
Having seen Monday’s decline, price activity is back to what might be a support focus for traders at 142.00, equal to half recent strength.
Closing breaks of 142.00 may be an indication of potential for further declines, although it is possible the 139.58 September 16th 2024 low may need to give way on a closing basis to suggest possibilities of increasing downside pressure on price.
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USDJPY UPDATED Technical Elements Observed
Bullish Reversal Setup:
There’s a greyed box indicating a potential bullish setup.
A projected “W” pattern (double bottom) is drawn within the red zone, implying a reversal formation.
Support Zone (Red Area):
Range: ~143.791 to 144.486
The chart suggests a possible bounce off this zone.
This is the critical demand/support area.
Resistance / Target Zone:
Target price: ~147.056
This implies a ~200-pip upside move from the support area.
Stop-Loss Indication:
Below the red zone: ~143.700
This is a conservative stop-loss based on the chart setup.
Trade Idea Summary (Based on Drawing)
Buy Zone: 144.486–144.000
Stop Loss: ~143.700
Take Profit: ~147.056
Risk:Reward Ratio: Approximately 1:3 or better
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🏴☠️Target 🎯: 147.500 (or) Escape Before the Target
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Buy Opportunity📈 USD/JPY LONG IDEA – Potential Bullish Reversal
USD/JPY is showing signs of a potential recovery after finding strong support at the 141.50 zone, where previous demand and a volume node converge. Price has rebounded off the support and is now looking to reclaim lost ground.
🟢 Entry: 142.812
🎯 Target: 148.157 – Retest of major resistance and volume imbalance above
🛑 Stop Loss: 141.424
📊 Risk/Reward Ratio: 3.87
📆 Estimated Target Date: May 6, 2025
📈 Projected Move: +3.74% or +5.345 points
🔍 Indicators:
Momentum histogram shows fading bearish pressure.
Bullish MACD-style wave forming a potential reversal.
Price holding above value area low (yellow/blue volume zones).
📌 Key Resistance to Watch: 144.072
A break above this could accelerate the move higher toward the 148 zone.
Complete Mapping Analysis — USDJPY (H1 Chart)Strategy Focus: Elliott Wave (Impulse) + AO Divergence + Fibonacci Extensions
🔍 1. Current Wave Structure (Elliott Wave Count)
You’ve identified:
A completed Wave 3 (impulse).
A completed or nearly completed Wave 4 correction.
Now projecting Wave 5 to complete the 5-wave impulse.
Substructure breakdown:
Wave 1-2: Clean impulse and pullback.
Wave 3: Strong rally with AO confirming higher momentum peaks.
Wave 4: Corrective move, breaking below the internal trendline (initial break), signaling potential end of correction.
Wave 5 (projected): Final push upward to complete the motive wave.
📊 2. Fibonacci Extension Targets
From Wave 0–3 and Wave 4 retracement:
2.618 extension: ~146.50
2.886 extension: ~146.78
4.236 extension: ~148.22 (Aggressive top for a possible extended fifth)
These are possible Wave 5 termination zones. Confluence with previous supply zones increases likelihood of reversal here.
📉 3. Momentum Confirmation — Awesome Oscillator (AO)
You're watching for:
Bearish Divergence on AO:
Wave 3 had a strong momentum peak.
Expect Wave 5 to push higher in price, but AO shows a lower high, signaling weakening momentum.
This aligns with classic Wave 5 behavior — price extension with momentum exhaustion.
🧭 4. Entry Strategy
Setup: Long entry at Wave 4 bottom.
Entry trigger: Initial break → minor pullback → bullish confirmation candle.
AO: Turns green after red bars = first sign of momentum recovery.
Optional confirmation: Break of short-term structure high (micro Wave 1 in Wave 5).
🎯 5. Take Profit Plan
Layered take-profit strategy based on Fibonacci and AO:
Target Zone Price Area Action
TP1 (Safe) ~1.618 (145.44–145.72) Take partial profit (30–50%)
TP2 (Primary) ~2.618 (146.50) Secure majority of profit (80%)
TP3 (Max/Stretch) ~4.236 (148.22) Optional final push / runner
🛡 6. Stop Loss Strategy
SL placement: Below Wave (4) low (~143.73 zone) or below structure break.
Use structure break or strong bearish engulfing as a reason to exit early if momentum fails.
⚠️ 7. Divergence & Reversal Monitoring
Once price enters your TP2–TP3 zone:
Look for:
AO divergence (price high vs. AO lower high).
Bearish engulfing candles or microstructure breaks.
Weak volume or extended wick rejection.
These may indicate Wave 5 completion and the start of Wave A (correction) or a reversal.
🔄 8. Next Play After Wave 5 Completes
If divergence confirms and reversal begins:
Map corrective structure (ABC).
Short from:
Break of rising wedge/trendline.
AO flips red + break of microstructure.
Target retracement:
0.382 to 0.618 retracement of the full Wave 1–5 impulse.
Target zone: ~144.80 – 143.70
✅ Summary: Strategic Flow
✅ Identify Wave 4 completion → Confirm via initial break + minor pullback.
✅ Long entry for Wave 5 → Enter on bullish candle or structural break.
✅ Track AO → Expect divergence at Wave 5 peak.
✅ Use Fibonacci for TP zones.
✅ Exit with confirmation of divergence and reversal signs.
✅ Option to reverse short post-Wave 5.
TOP DOWN ANALYSIS ON USDJPY 4HR TIMFRAME BIASOn the 4hr timeframe, price created divergence right at the major zone indicating reversal and price went further to break the 4hr trendline signaling bullish and rhyming with the monthly/weekly/daily established bullish bias hence we established a possible entry long on the USDJPY pair.
Yen Slips Toward 144 on Stronger DollarThe Japanese yen edged lower toward 144 per dollar on Tuesday, as the U.S. dollar strengthened amid optimism over potential U.S.-China trade talks and investor caution ahead of the Federal Reserve’s policy decision. President Trump suggested a possible reduction in tariffs on Chinese goods. Meanwhile, the Bank of Japan held rates steady but revised its growth and inflation outlook. Trading activity remained subdued due to a public holiday in Japan.
Resistance is located at 145.90, followed by 146.75 and 149.80. On the downside, support levels are at 139.70, then 137.00 and 135.00.
EUR/CAD Short, AUD/CAD Short, USD/CHF Long and USD/JPY ShortEUR/CAD Short
Minimum entry requirements:
• If structured 1H continuation forms, 1H risk entry within it.
AUD/CAD Short
Minimum entry requirements:
• 1H impulse down below area of value.
• If tight non-structured 15 min continuation follows, 5 min risk entry within it if the continuation is structured on the 5 min chart or reduced risk entry on the break of it.
• If tight structured 15 min continuation follows, reduced risk entry on the break of it or 15 min risk entry within it.
USD/CHF Long
Minimum entry requirements:
• Tap into area of value.
• 1H impulse up above area of value.
• If tight non-structured 5 min continuation follows, reduced risk entry on the break of it.
• If tight structured 5 min continuation follows, reduced risk entry on the break of it or 5 min risk entry within it.
• If tight non-structured 15 min continuation follows, 5 min risk entry within it if the continuation is structured on the 5 min chart or reduced risk entry on the break of it.
• If tight structured 15 min continuation follows, reduced risk entry on the break of it or 15 min risk entry within it.
USD/JPY Short
Minimum entry requirements:
• If structured 1H continuation forms, 1H risk entry within it.
USDJPY, Bullish TrendFundamentally JPY is on bearish side
COT data shows highest long positions opened in JPY
dovish remarks by central bank positions JPY on bearish side
Expected stable rate of USD in coming FOMC rise bulls in USD
seasonality shoes USD bullish in MAY while JPY sideways
Current scenario of trump being lenient on tarrifs also bring momentum
in risk off scenarios i.e lower participant interest in JPY
On technical, USDJPY hit its strong weekly support level
Look for buy setups
68% fib retracement completed
Trendline support intact
currently sideways
buy in parts
buy 1. CMP at small risk
buy 2. upon closing above 144.296
Stoploss below 143.5
USDJPY Will Move Higher! Long!
Take a look at our analysis for USDJPY.
Time Frame: 12h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is on a crucial zone of demand 144.942.
The oversold market condition in a combination with key structure gives us a relatively strong bullish signal with goal 148.284 level.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Like and subscribe and comment my ideas if you enjoy them!
USD/JPY holds within trend line - positive NFP news supports USD🔔🔔🔔USD/JPY news:
➡️ USD/JPY price decreased to 143.80 due to the weakness of the USD after the US employment report decreased compared to the previous month and Average Hourly Earnings m/m decreased slightly, However, NFP was better than the previous forecast, so this is probably support for the USD
Personal opinion:
➡️ USD/JPY is still maintained in the trend line, the buyers have returned after the RSI almost entered the oversold zone and there are signs of slowing down of the sellers.
➡️ Analysis based on resistance - support levels and trend lines combined with EMA to come up with a suitable strategy
Personal plan:
🔆Price Zone Setup:
👉Buy USD/JPY 143.80- 144.00
❌SL: 143.40 | ✅TP: 144.50 – 145.00
FM wishes you a successful trading day 💰💰💰
USDJPY 30M CHART PATTERNThis chart is a technical analysis of the USD/JPY currency pair on a 30-minute timeframe. Here's a breakdown of the chart:
Pattern Identified: An inverse head and shoulders pattern, often seen as a bullish reversal signal.
Support Zone: The green horizontal zone near 142.870 suggests strong buying interest; price has tested and bounced from it multiple times.
Entry Point: Indicated by the last green arrow (right shoulder bounce), suggesting a long (buy) position.
Stop Loss: Below the support zone (highlighted in red), protecting against a downward breakout.
Take Profit Levels:
First at approximately 144.750 (minor resistance).
Final target at around 145.856, which aligns with a previous high.
This setup aims to capitalize on the bullish reversal pattern with a favorable risk-to-reward ratio.
Would you like help calculating the exact risk-reward ratio for this trade?
USDJPY: Detail Technical Analysis and USDJPY CharacteristicsIn this long video, I go through USD/JPY short idea in 2 parts:
Part 1: Detailed Technical Analysis and Elliott Waves
1. Head and shoulders - daily
2. Completion of Elliott Waves
3. Breaking down of A-B-C
4. Measurement rules on profit targets.
Part 2: USDJPY as a product (characteristics)
1. It's a flight-to-safety product similar to Gold
2. thus also a short equity markets product.
2. It is a short dollar product.
USDJPY Tuesday AMThe overall weekly direction is quite bearish as there has been a recent bullish days retracement. If by 9:30 AM Eastern standard time we see this pair break internal liquidity by the time the market opens then we can expect this pair to go for more shorts. But given the timing of the week with the news, I’m expecting this pair to build momentum to take buyside liquidity before stamping through lower price. I expect to see this pair range a bit until Wednesday’s news.