EURJPY H4 TF Anaylsis

Chart Analysis

1. Break of Market Structure (BMS):
   • Several BMS points are marked, showcasing pivotal levels where the market has shifted its direction.
   • BMS zones indicate areas where bullish or bearish pressure has been established.
2. Order Blocks (+OB):
   • Bearish order blocks (supply zones) are highlighted in red. These represent areas where sellers took control, potentially serving as resistance zones for a pullback or reversal.
   • A bullish reaction block (BRB) is seen near a demand zone, representing a significant area where buyers gained control.
3. Fair Value Gap (FVG):
   • A grey zone at the bottom highlights an FVG. This is an inefficiency in price action, often acting as a magnet for price to fill before resuming its trend. It aligns with a demand zone, signaling a potential buying opportunity.
4. Liquidity Levels ($$$):
   • Liquidity zones are identified above recent highs and below recent lows. These areas are likely to be targeted by price before reversals.
5. Price Projections:
   • The chart suggests a potential bullish move towards the red supply zone after a pullback to a key demand zone near the FVG.
   • An alternate scenario includes a bearish continuation if the price breaks the support and moves towards deeper liquidity.

Potential Trade Setup

1. Bullish Scenario (Long Position):
   • Entry Zone: FVG/demand zone around 158.50–159.00.
   • Stop Loss: Below the demand zone or FVG at ~157.50.
   • Target: Red supply zone near 162.00–163.00 for a favorable risk-to-reward ratio.
   • Confirmation: Look for bullish reversal patterns or a shift in market structure (MSS) at the demand zone.
2. Bearish Scenario (Short Position):
   • Entry Zone: Red supply zone around 162.00–163.00.
   • Stop Loss: Above the supply zone at ~163.50.
   • Target: FVG/demand zone near 158.50–159.00 or intermediate liquidity zones.
   • Confirmation: Wait for bearish reversal patterns or rejections at the supply zone.
3. Neutral Stance:
   • If price consolidates within the current range (160.00–162.00), await a breakout or retest of key zones before entering trades.

Introductory Summary

This H4 analysis of EUR/JPY emphasizes structured trading opportunities by focusing on order blocks, fair value gaps, and market structure shifts. Traders can utilize these zones for precise entries and exits while managing risk effectively. The demand and supply zones, coupled with liquidity levels, provide a roadmap for anticipating price action in the short to medium term.