EURJPY TRADE IDEA

Hey Traders,

Here's a detailed look at my EURJPY setup on the 15-minute chart.

Market Context:
The pair has been moving sideways after a significant drop, suggesting potential accumulation before another move.

Key Levels:

Resistance Zone: 167.234 - This is a critical resistance level where the price has previously turned down.
Support Zone: 166.362 - This marks the low of the recent consolidation area, providing a solid base for potential long entries.
Volume Analysis:
Notice the spike in volume around 03:00, indicating strong participation and interest at these price levels. The subsequent candles show a decrease in volume, suggesting that the aggressive selling might be slowing down.

Trade Setup:

Entry: I am looking for a long entry around 166.362, the bottom of the consolidation zone. This area also coincides with a demand zone (highlighted in grey).
Stop Loss: Below the demand zone, around 166.293. This gives a tight stop to manage risk effectively.
Take Profit: The initial target is set at the resistance zone of 167.234, aligning with the previous high. This gives a good risk-reward ratio.
Rationale:

The market structure shows a potential reversal pattern forming, with the price respecting the demand zone.
The volume profile supports the idea of accumulation at these levels.
The risk-reward ratio is favorable, making this a high-probability setup.
I'll be monitoring the price action closely to see if it aligns with my expectations. Always remember to manage your risk and trade responsibly.

Happy Trading!