EURJPY has just made a very important move, and this is exactly the kind of setup that rewards patience over impulse.
Price has broken below last Friday’s low, which immediately tells us that liquidity has been taken and the market has shifted position. That level is no longer support, it has been cleared.
Now, with that move, price has officially entered discount territory.
And according to my methodology, that changes everything.
Where Price Is Now
At this point, I am no longer interested in sells.
With price in discount, my focus shifts to identifying a buy opportunity at value.
However, just because price is in discount does not mean it’s time to enter.
Right now, price is still pushing lower with momentum, and there is no confirmed setup yet.
Why I’m Not Buying Yet
This is where most traders get caught.
They see:
- Price in discount
- A strong move down
- A “cheap” price
And they jump in early.
But in my method, location alone is never enough.
We don’t buy just because price “should” go up.
We wait for the market to prove it’s ready.
The BRACE Method (What I Need to See)
Before I take any entry, I follow my BRACE confirmation process:
B – Break
Price must break structure to the upside, showing that sellers are losing control.
R – Retest
After the break, price must pull back into a defined zone (my demand area).
A – And
C – Confirm
E – Entry
I wait for a clear confirmation candle, typically:
- Strong wick rejection
- Smaller candle body
- Visible hesitation from sellers
No confirmation = no trade. Simple.
What Happens If Price Keeps Dropping?
If price continues lower, I don’t chase it.
I simply adjust my zone lower and continue to wait for a proper setup.
I am not trying to catch the exact bottom. I am waiting for confirmation at value.
Understanding the 200 SMA (Awareness Only)
You may notice that price is currently trading below the 200 SMA, which typically signals a bearish trend.
However, in my approach:
- The 200 SMA is not used for entries
- It remains on my chart strictly for awareness
My trade decisions are based on price location (premium vs. discount) and confirmation , not the SMA.
So while it may appear that I am trading against the trend, I am actually trading value within the larger move.
What I’m Watching Next
Before I consider a buy, I need to see:
- Price begin to slow down in the discount zone
- Signs of rejection at the lows
- A break in structure to the upside
- A proper retest and confirmation candle
Until then…
I wait.
Final Thoughts
Right now, EURJPY is not a trade — it’s a setup in progress.
- ✔ Price is in discount (buy zone)
- ❌ No BRACE confirmation yet
- ✔ Patience is required
The best trades don’t come from reacting…
They come from waiting for the market to confirm your idea.
And right now, the market hasn’t confirmed anything yet.
— D. Michele
State of Mind Trader
