long GBPJPY

Supply Zone Identified: The pink highlighted area at the top of the chart represents a supply zone. This is where sellers have shown dominance in the past, and we expect potential selling pressure to emerge again.
Demand Zone Identified: The blue highlighted area at the bottom represents a demand zone. This is where buyers have previously shown interest, and we anticipate potential buying pressure to resurface.
Price Action: The price has recently dropped from the supply zone and is approaching the demand zone. This presents a potential trading opportunity.
Volume Analysis: The volume bars at the bottom show increased activity during significant price movements, supporting the importance of these zones.
Potential Scenarios:
a) If price reaches the demand zone and shows signs of reversal, it could present a buying opportunity with a target near the supply zone.
b) If price breaks through the demand zone, it might indicate further downside potential.
c) Any rally back to the supply zone could offer a selling opportunity if rejection patterns form.
Risk Management: The gray box near the demand zone could serve as a stop loss area for long positions, while the upper edge of the supply zone could act as a stop for short positions.

Remember: Always use proper risk management and confirm entries with additional technical analysis or indicators before trading.