eurjpy buy setup

Setup Breakdown:
1. Previous Downtrend and Market Structure Shift (MSS):

Price was in a clear downtrend, as seen on the left side.
A Market Structure Shift (MSS) is marked — this suggests the beginning of a potential bullish reversal.
After MSS, price makes a higher high and pulls back, indicating bullish interest.
2. Liquidity Grab Below Previous Day’s Low (PDL):

Price swept below the Previous Day's Low (PDL) and into a demand zone (blue and purple shaded box).
This is a classic liquidity hunt — smart money clears out stop losses below the PDL before reversing.
3. Refined Demand Zone (Entry):

Entry is planned at the refined demand zone, where price previously showed buying interest.
The entry (pink box) is within this zone, suggesting you’re anticipating a reaction there.
4. FVG (Fair Value Gap) Fill and Targeting Supply:

The target zone is marked in the grey box at the top, just below 172.221, likely a previous supply area or unmitigated order block.
The grey shaded area is a high reward zone, showing you expect a strong bullish move from demand into that supply.
5. Risk-to-Reward:

Stop loss just below the demand zone, likely under the liquidity sweep.
Take profit is around 2–3x the stop distance, targeting the premium/supply area.
✅ Why This is a Strong Buy Setup:
MSS confirmed (shift from bearish to bullish structure).
PDL sweep = liquidity grab → fuels bullish move.
Entry in refined demand aligned with price action logic.
Clear imbalanced area above → price may seek to fill inefficiencies.
High Risk-Reward with low drawdown potential if demand holds