USDJPY POTENTIAL LONG OPPORTUNITY (MEAN REVERSION TRADE)

Alright hello awesome TradingView community! Hope you guys have had a fantastic weekend so far. I always love creating posts for you guys knowing that I have an awesome community of hungry and focused traders/investors potentially looking at this analysis and I really do hope you guys can pull some nuggets from this post! So let's dive in

OK so for USDJPY I am really looking for just a simple reversal (mean reversion) type of trade here. IF you guys look at USDJPY on a macro technical perspective it is coming off of multi-decade highs (YEN at multi-decade lows) and the USD has been moving lower against the JPY for a few months now. Fundamentally (which I am just building off of general bias) speaking I do see the YEN grabbing some strength with heavy optimism coming for the YEN. With that in mind when looking at price and my simplistic approach to trading I see prices coming down to a weekly/daily level of strong demand (previous buying area). AMAZING thing about the charts is it is a footprint/receipt of the bigger players and we can see they were buying at this zone before which as retail traders should leave us to believe they may be buying this zone again...ever heard of "history repeats itself?" It is true in the markets as well

SO when looking at this trade some technical confluences I have that helped me build this bias were:

1. Prices has been dropping for weeks/daily downtrend is overextended
2. Weekly/Daily RSI (relative strength index) is oversold on 4H,1D & 1W timeframes
3. Weekly/Daily previous buyer demand zone
4. Fib alignment confluence for reversal and target zones


ALRIGHT guys hope this all made sense nice and simple potential short term reversal setup on the USDJPY currency pair. IF you guys enjoyed this analysis please boost this post & follow my page for more highly accurate trade analysis & setups! Until next time...Cheers!