NZDJPY Long Setup

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NZDJPY Long Setup
Currency Pair: New Zealand Dollar (NZD) / Japanese Yen (JPY)
Timeframe: 4-hour (4H)

Current Price: 98.524

Setup Rationale:

Support Zone: The price has approached a key support zone between 98.317 and 98.202. This zone has previously acted as a strong support level, providing a good buying opportunity.
Bullish Candlestick Patterns: There are signs of bullish candlestick patterns forming near the support zone, indicating potential buying pressure and reversal.
Risk-Reward Ratio: The highlighted region shows a favorable risk-reward ratio, with the potential upside significantly outweighing the downside risk.
Entry:

Ideal Entry Point: Around 98.317, within the support zone.
Alternative Entry Point: A breakout above the immediate resistance at 98.868 could also provide a confirmation for a long position.
Stop Loss Placement: Just below the support zone at 98.202 to minimize risk.
Take Profit:

Initial Target: Around 99.000, where previous resistance levels are observed.
Secondary Target: Near 99.300, allowing for potential extended gains if the upward momentum continues.

Trade Management:
Monitor price action closely within the support zone for any signs of reversal or continuation.
Adjust the stop loss to break even once the price reaches the initial target to secure profits.
Consider partial profit-taking at key resistance levels to manage risk.

This setup capitalizes on the identified support zone and favorable risk-reward scenario, providing a strategic entry for a long position on the NZDJPY pair.