On the 4-hour 21-EMA, NZD/JPY is carving out a support structure.
Bulls are expecting a new bullish daily impetus to higher highs.
NZD/JPY Price Study: According to the last Asian session’s analysis, NZD/JPY Price Analysis: Bulls lurk at daily and 4-hour support, and support structures offer bullish chances.
However, while the price has moved in the expected direction since the initial analysis…
In the process, the price has created a new support structure above 77.40 at a well-worn historic level, as follows:
The price tested the prior 23 June lows on the 4-hour chart and was repeatedly rejected there.
In addition, near 77.60, the price has formed a sustaining structure within the bullish impulse.
A confluence of the 21 EMA can also be found.
Furthermore, when we zoom out to the weekly chart, we can see that this is a critical milestone on higher time frames as well:
As a result, the newly developed support structure may have supplanted the old area of support structure from which bulls may have expected a discount.
There’s a good chance the price will continue to rise from here.
A long position with a stop loss safeguarding the position from falling below the succeeding support structure can be taken for a 1:3 risk to reward opportunity./n
