Iām looking at USDJPY on the 15 minute chart. The market made a strong drop earlier and swept the lows around 158.27. That move took liquidity below and then we saw a sharp reaction up. That tells me stops got cleared and buyers stepped in after the sweep.
Since then price has been pushing higher and now itās consolidating around 158.65 to 158.70. This area lines up with a small demand zone and also sits around the 0.50 of the intraday move.
For me this looks like a continuation setup. The market already grabbed liquidity from below, so now the focus shifts to the upside. The structure on this timeframe is starting to print higher lows, which shows buyers are slowly gaining control.
Above current price the main draw on liquidity is the highs around 159.00. Thatās where stops are sitting and where price could be attracted next.
So my idea is simple. As long as price holds above this zone around 158.60 and keeps forming higher lows, Iām interested in longs. I would look for continuation toward the highs.
If price breaks below this area with strong momentum and starts accepting under 158.50, then the idea weakens and I step aside because that would mean sellers are stepping back in.