The forex market is a game of patience, precision, and patterns — and right now, AUD/JPY on the monthly chart is presenting a textbook scenario that I believe deserves attention.
🧠Overview
As traders, especially those focused on higher timeframes, it’s important to spot the bigger moves before they unfold. In this case, I’m closely monitoring AUD/JPY, which appears to be in a transitional phase: a setup where the market could clear sell-side liquidity before heading into a major demand zone — a level that could catalyze the next significant bullish wave.
🔎 Current Market Structure
Looking at the monthly chart, we observe:
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A series of higher highs and higher lows, suggesting that the long-term uptrend is intact.
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However, recent months have shown weak bullish momentum, with wicks forming on monthly candles — an indication of sell-side pressure building up.
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Just below the most recent swing low lies a pocket of liquidity — where many stop-losses are likely resting.
This makes it highly probable that market makers will sweep this liquidity before any meaningful reversal or continuation takes place.
🟫 The Demand Zone in Focus
What comes after the liquidity grab?
I've marked a key demand level on the chart — an area that previously served as the base of a strong impulsive move to the upside. This zone represents a confluence of:
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Historical buyer interest
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Institutional accumulation zone characteristics
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A logical point for price to seek equilibrium before resuming the trend
Once price enters this zone, I’ll be watching closely for:
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Bullish candlestick patterns (e.g., engulfing, pin bar)
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Break of structure on lower timeframes as a trigger for entries
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Volume spikes or divergence signals
🧠Trade Plan Summary
| Element | Expectation |
|---|---|
| Bias | Bullish (after liquidity sweep) |
| Timeframe | Monthly |
| Short-Term Outlook | Bearish move to grab liquidity |
| Key Zone | Major Demand Zone (marked on chart) |
| Entry Style | Wait for confirmation after demand zone touch |
| Risk Consideration | Low-leverage, wide stop due to high timeframe |
📣 Final Thoughts
This kind of setup doesn’t appear every week — it’s a high-probability scenario forming over months. If price respects the demand zone after sweeping liquidity, we could witness a powerful bullish continuation.
Remember, timing is everything — so while the Monthly chart gives us the roadmap, the actual entry execution should come from lower timeframes using confirmation tools.
Are you tracking AUD/JPY too?
📬 Drop your thoughts in the comments section or share your chart — I’d love to hear your take!
Until next time,
Stay focused, stay patient, and trust the process.