Setup of the Week: EURJPY Long Toward LiquidityI'm currently watching EURJPY for a potential long setup. Price is showing signs of bullish structure, and there’s a clean upside target sitting at 164.20, where equal highs rest on the weekly chart. That level also ends in a .20—an institutional number often used for stop placement—which adds confluence that price may be drawn toward it.
Why I'm Bullish
The Euro is showing strength across the board this week, supporting directional alignment.
Structure is starting to build bullish pressure, especially as price grinds upward toward liquidity.
We have weekly equal highs at 164.20, which is a clear magnet. (zoom out)
This setup is pretty straightforward: I’m anticipating that price wants to make a move toward those untouched highs. No extra complexity needed.
Recent Price Action
Looking at structure from April 9th:
Price sold off, took out a daily low, and then reversed sharply—classic manipulation and reclaim. The idea is that smart money will need to close those sell orders out if price returns to that zone.
The April 9th move down into 160 created what I believe is an institutional footprint.
This move took out liquidity, reversed hard, and left behind a zone I expect to be defended.
On Sunday’s weekly open, price quickly ran last week’s high, then reversed hard during the Tokyo session—a likely short-term trap. This tells me we might see some short-term bearish pressure before a larger move up, which is fine since I want price to return to the institutional buy zone around 160.00–160.30.
📍 Key Levels
Buy Zone: 160.00–160.30
This is where volume flooded in to drive the initial bullish manipulation move. If price returns, I expect heavy buying interest to step in.
Trap Confirmation: 162.80
During London open today, price ran a low, then reclaimed a high, and retested 162.80—another institutional level (ends in .80). That area acted as a trap and likely marked the start of the move down. We should see price stay under this move for this idea to work.
Target: 164.20
That’s the weekly equal high. Liquidity sits above there. If we return to the buy zone and bulls step in, I’ll be looking to ride the move up into that level.
Summary
I’m looking to long EURJPY on a retracement into 160.00–160.30, ideally after a stop hunt or false breakdown into that zone. The goal is to ride the volume push up toward the weekly target of 164.20, where stops likely sit from early sellers who might take a trendline break trade. If price respects the London trap at 162.80 and moves lower, I’ll be watching closely for reaction and confirmation in the buy zone.
Let me know your thoughts below or if you're watching the same levels.
