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