USD/JPY Waits for Extreme Buys to Continue Rising

1-Day Time Frame Analysis: Momentum in the Daily Supply Zone

If you look at the 1-day time frame, the price of the USD/JPY currency pair is in an uptrend. This can be seen from the Golden Cross between Mid BB and EMA-50 which has occurred since early February. This increase is expected to continue because the price has just formed a Buy Momentum around the Top BB.

Until now, the price has not shown any signs of changing the trend in the form of Extreme Sell around the BB Top. The current opportunity is waiting for the Reentry Setup to form after Momentum Buy in the MA-5/10 Low, Mid BB, or EMA-50 area.

In terms of supply and demand analysis, USD/JPY has just formed a rejection in the daily supply zone. This rejection is likely to bring the price down to the daily Demand zone. The price itself is expected to rise again to the Supply zone after getting a boost around the Demand zone. 

The continuation of this increase is supported by the absence of a valid Rejection in the form of Extreme in the Supply zone. In addition, the daily Demand zone is currently around Mid BB and EMA-50 which is considered good territory for the formation of Reentry Setup after Momentum in BBMA OA. 

4-Hour Time Frame Analysis: Wait for Extreme Buy to Validate

Daily Opportunities Judging from the 4-hour time frame, the price of the USD/JPY currency pair is also in an uptrend. The Golden Cross in this time frame was just formed at the beginning of last week. The price is currently in between Mid BB and EMA-50. This indicates that the short-term strength is still in equilibrium.

Judging from the last setup that was formed, USD/JPY has just formed a strong Buy Momentum at the BB Top. The price then gradually fell to its current position. In order for the daily Reentry Setup to be valid, it is necessary at least to form an Extreme Buy around the Low BB 4-hour time frame.

Position Opening Suggestions

Signal: Buy From the analysis of several time frames above, it was decided to focus on finding Buy positions on the USD/JPY currency pair.

Entry: 110,000

The entries in this analysis will be placed around the 1-hour Low BB time frame at the 110,000 level. This level was chosen because it is around the Extreme Buy level that was formed last weekend. This level is also only a few pips from the Demand zone which was the beginning of last week's upward movement. It is estimated that the price will return to around this level as an attempt to retest for the formation of the Lost Volume Market Setup, as the beginning of the continuation of the Setup Reentry in the 1-day time frame.


Stop Loss: 109,750

Stop Loss in this analysis will be placed around the lower limit of the 1-hour Demand time frame zone. With a distance of about 25 pips, Stop Loss can be positioned at the level of 109,750. If you don't like installing Stop Loss, you can close the position after the price has closed forming a Sell Momentum around the Low BB 4-hour time frame.

Take Profit: 110,750

Using Risk:Reward 1:3, the Take Profit distance will be placed as far as 3x the Stop Loss distance. Based on the results of these calculations, Take Profit can be targeted at the level of 110,750 with a distance of about 75 pips from the Entry.

Estimated Trading Time: 1-2 Days.

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