NZDJPY – Imbalance + Liquidity Sweep + Mean Reversion SetupNZDJPY recently took out a major liquidity level around 90.907, sweeping the equal lows resting below that zone. This sweep created a fake breakout of structure, indicating that the downside move was engineered to capture liquidity rather than continue lower.
After the liquidity grab, price immediately reversed back inside the previous range, showing rejection from the sweep level. This confirms a liquidity sweep + BOS failure, a strong signal that the market is shifting direction.
Price is now correcting back toward its mean value, reacting to the inefficiencies left behind. There is a clear imbalance zone above, and price is actively rebalancing that inefficiency.
Furthermore, NZDJPY has an equilibrium structure near 90.20, which acts as a magnet for price during mean reversion phases. This equilibrium zone aligns with the discounted area of the current micro-range, creating a high-probability retracement target.
