🧱 1. Consolidation Zone: The Dual Directional Area
From around August 2024 to May 2025, EURJPY traded inside a well-defined consolidation range, marked between approximately 155.00 to 165.00. This phase can be categorized as a Dual Directional Zone, meaning both buyers and sellers had tactical entries, but the market was in accumulation/distribution mode.
This phase often traps breakout traders and builds liquidity on both sides.
Price repeatedly swept highs and lows inside this zone but lacked any commitment, signaling that larger players were building positions.
The flat structure over months hinted that a major move was imminent.
⚠️ 2. Major CHoCH (Change of Character)
The first clue of shifting momentum was the CHoCH, which signaled a change in direction and flow of control.
The lower highs and lower lows began to shift into higher lows, showing buying strength beneath the surface.
This change didn’t immediately lead to breakout, but it marked the early intention of bullish dominance.
🚀 3. Major BOS (Break of Structure): Confirming the Bullish Bias
The clean break above the range high was the confirmation of a major bullish BOS.
This wasn’t just a minor pop — it was an aggressive breakout, validating that institutional liquidity had been accumulated and was now being deployed.
The price ran swiftly toward the Bullish Target Zone (~177.50–180.00) with very little pullback, suggesting urgency from buyers or short-covering from trapped sellers.
🎯 4. Bullish Target Reached – What's Next?
Price has hit the projected Bullish Target Area — a region of prior imbalance and psychological round numbers.
Traders who caught the breakout now face a critical decision point: Will price continue higher into price discovery mode, or is this the exhaustion phase?
If price holds above the BOS level (~165.00), there’s still room for continuation. But signs of rejection or slowing momentum here could lead to a correction.
🔻 5. Bearish Alternative: Trap and Reversal Scenario
The bearish path is not out of play — in fact, this move upward could potentially be a liquidity sweep.
If price fails to stay above the BOS and rapidly closes back into the consolidation range, it would suggest a bull trap.
This would confirm a deviation, which often leads to violent reversals.
The projected Bearish Target Zone (~145.00–147.50) aligns with prior unmitigated zones and imbalance that may attract price if sentiment flips.
🧭 6. Trading Strategy & Risk Planning
For Bulls: Watch for consolidation above 165.00. Breakout + Retest entries toward 180.00 or beyond offer high R/R.
For Bears: Look for exhaustion or fakeout patterns (like a Quasimodo or supply engulfing) near current highs. A breakdown and close below 165.00 signals short entries targeting 150s and potentially 147s.
💬 Final Thoughts:
This chart is a prime example of how patience during a range and reaction after breakout pays off. Smart traders don’t chase — they prepare.
A bullish continuation may still be in play.
However, if this move was only a liquidity purge, the reversal could be deep and fast.
Stay alert, mark your key levels, and trade what you see — not what you feel.
From around August 2024 to May 2025, EURJPY traded inside a well-defined consolidation range, marked between approximately 155.00 to 165.00. This phase can be categorized as a Dual Directional Zone, meaning both buyers and sellers had tactical entries, but the market was in accumulation/distribution mode.
This phase often traps breakout traders and builds liquidity on both sides.
Price repeatedly swept highs and lows inside this zone but lacked any commitment, signaling that larger players were building positions.
The flat structure over months hinted that a major move was imminent.
⚠️ 2. Major CHoCH (Change of Character)
The first clue of shifting momentum was the CHoCH, which signaled a change in direction and flow of control.
The lower highs and lower lows began to shift into higher lows, showing buying strength beneath the surface.
This change didn’t immediately lead to breakout, but it marked the early intention of bullish dominance.
🚀 3. Major BOS (Break of Structure): Confirming the Bullish Bias
The clean break above the range high was the confirmation of a major bullish BOS.
This wasn’t just a minor pop — it was an aggressive breakout, validating that institutional liquidity had been accumulated and was now being deployed.
The price ran swiftly toward the Bullish Target Zone (~177.50–180.00) with very little pullback, suggesting urgency from buyers or short-covering from trapped sellers.
🎯 4. Bullish Target Reached – What's Next?
Price has hit the projected Bullish Target Area — a region of prior imbalance and psychological round numbers.
Traders who caught the breakout now face a critical decision point: Will price continue higher into price discovery mode, or is this the exhaustion phase?
If price holds above the BOS level (~165.00), there’s still room for continuation. But signs of rejection or slowing momentum here could lead to a correction.
🔻 5. Bearish Alternative: Trap and Reversal Scenario
The bearish path is not out of play — in fact, this move upward could potentially be a liquidity sweep.
If price fails to stay above the BOS and rapidly closes back into the consolidation range, it would suggest a bull trap.
This would confirm a deviation, which often leads to violent reversals.
The projected Bearish Target Zone (~145.00–147.50) aligns with prior unmitigated zones and imbalance that may attract price if sentiment flips.
🧭 6. Trading Strategy & Risk Planning
For Bulls: Watch for consolidation above 165.00. Breakout + Retest entries toward 180.00 or beyond offer high R/R.
For Bears: Look for exhaustion or fakeout patterns (like a Quasimodo or supply engulfing) near current highs. A breakdown and close below 165.00 signals short entries targeting 150s and potentially 147s.
💬 Final Thoughts:
This chart is a prime example of how patience during a range and reaction after breakout pays off. Smart traders don’t chase — they prepare.
A bullish continuation may still be in play.
However, if this move was only a liquidity purge, the reversal could be deep and fast.
Stay alert, mark your key levels, and trade what you see — not what you feel.
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.