A strong buy signal has emerged on EUR/JPY, driven by retail trading flow analysis. Let's break down the setup and why this trade aligns with smart money strategies.
Signal Breakdown
Retail Sentiment Shift 📊
After breaking above the descending triangle, we observed a surge in retail sell positions, indicating a strong bearish bias among traders.
Despite a minor pullback, the majority of retail traders remain short, reinforcing the likelihood of a stop-out rally.
Price Action & Smart Money Reaction 🏦
The breakout invalidated the bearish triangle pattern, yet retail traders continued shorting.
Our trading flow model shows short positioning far exceeding rolling averages, a classic trap scenario where market makers may push prices higher to liquidate retail shorts.
Trade Setup
Buy Entry: 📈 161.50
Stop Loss: ❌ 159.70
Target: 🎯 175.56
Rationale: Retail traders are heavily short, margin utilization is rising, and smart money may continue squeezing higher.
Bonus: 💰 This setup also benefits from a positive carry swap, making it even more attractive for medium-term holding.
Final Thought
Our EUR/JPY trade strategy is built on 80% trading flow sentiment and 20% technical & fundamental analysis. Retail traders often get trapped at key reversal points, and we capitalize on these inefficiencies.
📊 Will the smart money push EUR/JPY higher? Drop your thoughts below! 👇
Signal Breakdown
Retail Sentiment Shift 📊
After breaking above the descending triangle, we observed a surge in retail sell positions, indicating a strong bearish bias among traders.
Despite a minor pullback, the majority of retail traders remain short, reinforcing the likelihood of a stop-out rally.
Price Action & Smart Money Reaction 🏦
The breakout invalidated the bearish triangle pattern, yet retail traders continued shorting.
Our trading flow model shows short positioning far exceeding rolling averages, a classic trap scenario where market makers may push prices higher to liquidate retail shorts.
Trade Setup
Buy Entry: 📈 161.50
Stop Loss: ❌ 159.70
Target: 🎯 175.56
Rationale: Retail traders are heavily short, margin utilization is rising, and smart money may continue squeezing higher.
Bonus: 💰 This setup also benefits from a positive carry swap, making it even more attractive for medium-term holding.
Final Thought
Our EUR/JPY trade strategy is built on 80% trading flow sentiment and 20% technical & fundamental analysis. Retail traders often get trapped at key reversal points, and we capitalize on these inefficiencies.
📊 Will the smart money push EUR/JPY higher? Drop your thoughts below! 👇
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.