EUR/JPY: Watching for a Swing Long Opportunity as Price Nears Key Support

Market Context & Technical Read

Good morning everyone. Taking a look at EUR/JPY this morning, the pair is currently trading around 161.82, down about -0.38 (-0.23%) over the last 24 hours. While the broader trend has been sideways, we've seen a notable pullback from yesterday's high of 162.39. The critical level I'm watching closely is the day's low at 161.26, which aligns well with a recent support zone. A test and hold of this area could present a compelling long entry for a swing trade. I'm looking for signs of buyers stepping in around this 161.26 mark, perhaps a bullish candlestick pattern on the hourly or 4-hour chart, to confirm a potential bounce.

Proposed Trade Setup & Risk Management

Based on this technical confluence, my setup for a swing long