Looking to go long EUR/JPY after a clean correction into demand and signs of higher timeframe bullish continuation.
Weekly Chart:
Last week printed a bullish engulfing candle that slightly broke out of the previous supply zone, suggesting early-stage trend continuation.
While we opened this week with a sharp sell-off (around 170 pips from the highs), price action shows it was corrective, not impulsive.
4H Chart:
Price is setting up a Morning Star formation — two hours away from confirmation.
If completed, it would signal a bullish reversal right off a critical structure zone.
1H Chart:
A double bottom is forming off a predetermined 1H demand zone — a key liquidity pocket I’ve been tracking.
Recent hourly candle gapped up, further suggesting buyers are starting to step in after soaking up sell-side pressure.
Trade Thesis:
Expecting a bullish reaction from demand and a retest of the previous highs.
This correction appears technical rather than fundamental — no steamy downside momentum despite the initial slide.
Risk-Reward Profile:
Target: Retest of the highs
R:R: 1:3.5
Stop: Below the double bottom structure
This setup blends clean structure with a higher timeframe bullish bias — looking for a continuation leg if momentum holds.
http://dlvr.it/TKRKKm