Buy OpportunityPotential Trade Setup:
Long Position: The updated analysis favors a long position based on the support bounce and potential momentum shift.
Entry: Enter the long trade at the current price level of 90.48.
Stop Loss: Place the stop loss below the support at 90.00 to allow for minor fluctuations while protecting against further downside.
Take Profit: Target the resistance level at 92.46, which aligns with the next major resistance zone.
Analysis Breakdown:
Current Price Action:
NZD/JPY is currently trading at 90.48, close to a recent low where it found support.
The price action indicates a potential reversal from the support level at 90.49, as seen by a bounce on the chart.
Volume Profile:
The volume profile highlights significant liquidity around 90.50, suggesting a strong area of interest where buyers have stepped in previously.
This area may act as a launching point for a potential bullish move.
Support and Resistance Levels:
Support: The critical support level is identified at 90.49, aligning with the current bounce zone.
Resistance: Overhead resistance levels are marked at 91.39, 92.05, and the final target at 92.46.
Take-Profit Level: The suggested take-profit is at 92.46, offering a potential upside of 2.16% from the current level.
Squeeze Momentum Indicator:
The Squeeze Momentum Indicator shows a transition with red bars decreasing, suggesting weakening bearish momentum.
A potential shift to green bars could indicate the start of a new bullish phase.
