EUR/JPY 1H Timeframe AnalysisNZD/JPY Signal Type: Buy Stop
Entry: 88.020
Stop Loss: 87.480
Take Profit: 89.840
Risk: 1%
Trend Overview:
Currently, on the 1-hour timeframe, EUR/JPY is in a short-term downtrend.
The price initially broke through the minor key support level at 158.000, continuing to the downside.
However, sellers lost momentum as the price reached the next key minor support level, signaling a weakening of the downtrend.
Price Action Expectation:
At the next support zone, a double top-bottom pattern developed, followed by a bullish engulfing candle, indicating a potential price reversal from bearish to bullish.
The price then broke through key resistance and established higher highs and higher lows, suggesting a shift in market structure.
This price movement indicates the beginning of a Change of Character (CHoC), where the market changes its trend from bearish to bullish.
The price is now accumulating buying orders, signaling a period of consolidation before a possible breakout.
Liquidity Grab / Manipulation Stage:
As part of the liquidity grab or manipulation stage, the price is expected to break below the current support level temporarily.
This break could trigger stop-losses from earlier buyers, who may have entered too soon, before price moves back in the bullish direction.
Once the price retests the support zone and breaks back above it, the uptrend should resume.
