USD/JPY Reversal from Premium Zone with Inefficiency Fill
Analysis Summary
Premium Zone and Strong High: The premium zone, marked between 153.100 and 153.300, highlights an area where selling pressure could intensify. The strong high at 153.100 reinforces this resistance level, suggesting it may act as a turning point if tested.
Inefficiency (Fair Value Gap): The inefficiency (or FVG) zone at around 152.700–152.900 may act as a magnet for price to fill this imbalance. This zone could be targeted before a potential reversal from the premium area.
Break of Structure (BOS) and Discount Zone: A previous BOS to the downside suggests bearish momentum. The discount zone around 151.500–151.700 below the current price could act as a support level if the price reverses from the premium zone and resumes a bearish trend.
Weak Low: The weak low near 151.700 may serve as a target if the price resumes its downtrend, confirming a bearish continuation.
Potential Scenarios:
Bearish Reversal from Premium Zone: If the price moves up to test the premium zone around 153.100–153.300 and encounters resistance, a bearish reversal is likely. This could result in a move down to fill the inefficiency around 152.700 and potentially target the weak low at 151.700.
Continued Bullish Momentum: If buyers push through the premium zone and the strong high at 153.100, this could invalidate the bearish outlook and suggest a continuation to higher levels.
Conclusion
USD/JPY is approaching a premium zone where a bearish reversal could unfold, targeting the inefficiency at 152.700 and the weak low at 151.700. Traders should watch for rejection signals near 153.100–153.300 to confirm a potential bearish setup.
Premium Zone and Strong High: The premium zone, marked between 153.100 and 153.300, highlights an area where selling pressure could intensify. The strong high at 153.100 reinforces this resistance level, suggesting it may act as a turning point if tested.
Inefficiency (Fair Value Gap): The inefficiency (or FVG) zone at around 152.700–152.900 may act as a magnet for price to fill this imbalance. This zone could be targeted before a potential reversal from the premium area.
Break of Structure (BOS) and Discount Zone: A previous BOS to the downside suggests bearish momentum. The discount zone around 151.500–151.700 below the current price could act as a support level if the price reverses from the premium zone and resumes a bearish trend.
Weak Low: The weak low near 151.700 may serve as a target if the price resumes its downtrend, confirming a bearish continuation.
Potential Scenarios:
Bearish Reversal from Premium Zone: If the price moves up to test the premium zone around 153.100–153.300 and encounters resistance, a bearish reversal is likely. This could result in a move down to fill the inefficiency around 152.700 and potentially target the weak low at 151.700.
Continued Bullish Momentum: If buyers push through the premium zone and the strong high at 153.100, this could invalidate the bearish outlook and suggest a continuation to higher levels.
Conclusion
USD/JPY is approaching a premium zone where a bearish reversal could unfold, targeting the inefficiency at 152.700 and the weak low at 151.700. Traders should watch for rejection signals near 153.100–153.300 to confirm a potential bearish setup.
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.