USDJPY Analysis Based on 1H, 4H, and Daily Charts

Using Liquidity Grab, Fair Value Gap (FVG), Price Action, and Smart Money Concepts (SMC), let's break down the potential trade setup for USDJPY.

1H Timeframe Analysis (Short-term Intraday View)

Liquidity Grab:

Price recently swept liquidity from a prior resistance zone near 150.60 - 151.00, taking out early buyers.

FVG (Fair Value Gap):

There's an imbalance left near 149.50 - 149.80, suggesting that price may return to mitigate this area.

Moving Averages:

Price is currently testing a key 200 EMA resistance (white line), which is acting as dynamic resistance.

Expectation:

Possible short-term pullback to 149.50-149.80 before any further bullish movement.

4H Timeframe Analysis (Mid-Term Outlook)

Trendline & Structure:

USDJPY has been respecting a downtrend structure, rejecting a key supply zone. It is currently testing a bearish breaker block around 150.60 - 151.00.

Liquidity & Order Block:

Liquidity Grab: Price grabbed liquidity from late buyers who entered at 150.60-151.00, making it a strong resistance area.

Order Block: There’s a 4H order block near 149.30 - 149.50, where price may react.

Expectation:

If price rejects 151.00 strongly, expect a retracement toward 149.50 (FVG & OB mitigation).

A clean break above 151.00 would invalidate the short setup and confirm bullish momentum toward 152.00.

Daily Timeframe Analysis (Long-Term View)

Market Structure:

The overall trend remains bearish, with price breaking previous higher lows.

A major support level at 148.60 aligns with liquidity resting below.

Trendline & Key Levels:

Key Resistance: 150.60 - 151.00

Key Support: 148.60 - 149.00

Expectation:

If the daily closes below 150.00, a continuation toward 149.00 - 148.60 is likely.

A strong bullish daily close above 151.00 could invalidate shorts and push price toward 152.50 - 153.00.

Trade Setup & Potential Entries

Bearish Setup (Preferred)

Entry: 150.60 - 151.00 (Supply Zone & Liquidity Grab)

Stop Loss: 151.30 (Above the liquidity grab)

Take Profit 1: 149.50 (FVG mitigation)

Take Profit 2: 148.60 (Major support)

Bullish Setup (Alternative)

Entry: 149.30 - 149.50 (4H Order Block & FVG)

Stop Loss: 148.80

Take Profit 1: 150.60

Take Profit 2: 152.00

Final Thoughts

Current Bias: Short-term bearish to fill imbalance before potential bullish continuation.

Confirmation: Watch how price reacts at 151.00 resistance or 149.50 support for entry triggers.

Invalidation: A daily close above 151.00 shifts bias bullish; a break below 148.60 confirms further downside.