- NZD/JPY carving out a support structure on the 4-hour 21-EMA.
- Bulls are in anticipation of a fresh daily bullish impulse to higher highs.
As per the prior Asian session’s analysis, NZD/JPY Price Analysis: Bulls lurking at daily and 4-hour support, there are bullish prospects from support structures.
However, since the initial analysis, while the price has moved in the expected trajectory …
… the price has formed new support structure above 77.40 in the process at a well worn historic level as follows:
In the above 4-hour chart, the price tested the prior 23 June lows and was rejected there a number of times.
Also, the price has formed a supporting structure within the bullish impulse near 77.60.
There is also a confluence of the 21 EMA.
Moreover, zooming all the way out to the weekly chart, we can see that this is in fact a key level on the higher time frames also:
Therefore, the original area of support structure from which bulls may have been expecting a discount may now be superseded by the newly formed support structure.
There is a high probability that the price will move higher from here.
A long position can be entered for a 1:3 risk to reward opportunity with a stop loss protecting the position from below the subsequent support structure.