Downloading...

EUR/JPY Long Setup – Bullish Reversal from Key Support Zone

624
Entry Point: 162.227

Stop Loss: 161.629

Take Profit (Target): 166.778

Current Price: ~162.798

Risk/Reward Ratio:

Risk: ~60 pips

Reward: ~455 pips

Risk/Reward ≈ 1:7.6 (strong setup)

🔍 Technical Insights
Support Zone:

The purple rectangle around 162.227 to 162.000 is identified as a key demand zone or support area.

Price has tested this zone previously and appears to be bouncing off it.

Price Structure:

The pattern suggests a potential double-bottom or reversal structure forming.

A rounded recovery projection is drawn, implying bullish momentum is expected.

Moving Averages:

A red (shorter period) moving average is crossing below the price.

A blue (longer period) moving average near the support zone could act as dynamic support.

Target Area:

166.778 marks a clear resistance or prior high and is labeled as the “EA Target Point”.

This is a logical profit-taking zone based on past price action.

✅ Bullish Trade Bias Justification
Strong support reaction near entry.

Favorable risk/reward ratio.

Reversal pattern potential.

Confluence with moving average support.

⚠️ Considerations
Ensure confirmation from a bullish candle or reversal signal before entry.

Be mindful of macroeconomic events or EUR/JPY fundamentals that might impact volatility.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.