NZD/JPY Price Analysis: 3:1 R/R setup to the upside

This was a developing story

• NZD/JPY is showing signs of bullish potential for a day trade.
• Bulls will look for a restest of the support structure for a run higher. 

NZD/JPY has made a move to the upside following a healthy correction of the hourly impulse.

This gives rise to the prospects of further gains before the week is out offering a 1:3 risk to reward ratio (R/R) and high probability trade setup on the hourly time frame, administered and monitored from a 15-min time scale.

Hourly chart

The hourly chart shows that the price has made a concerted effort to the upside and has corrected in what could be the start of the next bullish impulse. 

15-min chart

There is a buy limit that needs to be filled if the price doesn't just bolt, that will reward the position with a 1:3 risk to reward ratio.

The stop loss will be moved to breakeven if there is a new support structure formed to the upside.

Breakeven achieved

This is now a free ride towards the target.

Outcome

The pair made a number of attempts to break 0.6920.

The prudent thing to do is to take profit as close to the target as possible than just price watch for the sake of a couple of pips.

Either the trade was a winner if profit was taken around 0.6920 or it was breakeven.