EUR/JPY Short – 4th Rejection from Key Supply Zone + Bearish Engulfing Into Range
Looking for a short setup on EUR/JPY after a clean multi-timeframe rejection from the upper boundary of a well-respected zone.
Daily Chart:
Price has tested this trendline resistance zone four times this week — failing each time. Today’s rejection at 163.151 marks the 4th consecutive denial of higher ground. Structurally, this is shaping up as a textbook range trade.
4H Chart:
The latest 4-hour candle printed a sharp doji right at the supply zone — a strong indecision signal that often precedes reversal. Friday flows are light, so it’s likely a final tap before the weekend.
1H Chart:
Price respected the zone all London session. We now see several wick rejections, followed by a bearish engulfing candle on the most recent hourly close — confirming seller presence.
News Context:
No major upcoming data. Tokyo CPI dropped during Asia session and came in strong — that could lend strength to the yen and support downside momentum from here.
Target:
Looking for a move down to the bottom of the range near 161.142
Entry: Near 163.151
Stop: Above supply
Target: 1:3.69 R:R
Note: Could take time to play out — likely into next week if not into New York session follow-through.
This is a clean supply rejection play with a well-defined range and no macro news in the way.
Looking for a short setup on EUR/JPY after a clean multi-timeframe rejection from the upper boundary of a well-respected zone.
Daily Chart:
Price has tested this trendline resistance zone four times this week — failing each time. Today’s rejection at 163.151 marks the 4th consecutive denial of higher ground. Structurally, this is shaping up as a textbook range trade.
4H Chart:
The latest 4-hour candle printed a sharp doji right at the supply zone — a strong indecision signal that often precedes reversal. Friday flows are light, so it’s likely a final tap before the weekend.
1H Chart:
Price respected the zone all London session. We now see several wick rejections, followed by a bearish engulfing candle on the most recent hourly close — confirming seller presence.
News Context:
No major upcoming data. Tokyo CPI dropped during Asia session and came in strong — that could lend strength to the yen and support downside momentum from here.
Target:
Looking for a move down to the bottom of the range near 161.142
Entry: Near 163.151
Stop: Above supply
Target: 1:3.69 R:R
Note: Could take time to play out — likely into next week if not into New York session follow-through.
This is a clean supply rejection play with a well-defined range and no macro news in the way.
Trade closed: stop reached
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.