Impulsive bearish move with huge Imbalance formed due to unexpected news from BOJ. We may use this as our HTF directional bias for long term perspective.
Based on the principle of "For every seller there must be a buyer", liquidity provider must have experience orders imbalance from this move. In other words, they will have more Long position in their account balance than short position as they act as the counter part to fulfill the short orders from institutions & retail traders.
In order to rebalance their inventory, they will need to seek for BSL in the future time. It might not happen now, but it will and it's expected to happen in the future. Especially when we see sign of algorithm driving price higher when significant BSL has formed. Keep in mind that the objective of algorithm to drive price higher will be to seek for BSL, not the true trend.
Based on Fundamental, the true trend is bearish.
Based on the principle of "For every seller there must be a buyer", liquidity provider must have experience orders imbalance from this move. In other words, they will have more Long position in their account balance than short position as they act as the counter part to fulfill the short orders from institutions & retail traders.
In order to rebalance their inventory, they will need to seek for BSL in the future time. It might not happen now, but it will and it's expected to happen in the future. Especially when we see sign of algorithm driving price higher when significant BSL has formed. Keep in mind that the objective of algorithm to drive price higher will be to seek for BSL, not the true trend.
Based on Fundamental, the true trend is bearish.