- NZD/JPY bulls take on the bear's commitments at a thick layer of resistance structure.
- There is a downside bias until bulls breach overhead resistance.
The price action in recent trade has been bullish and the bulls remain in control.
The following is a technical analysis of the price structure between the daily and 4-hour time frames from which swing traders can observe subsequent developments and determine their game plan.
The daily bearish impulse was corrected in a significant Fibonacci retracement which has, in recent trade, penetrated beyond the 61.8% Fibonacci retracement level.
That being said, the bulls still have their work cut out given the amount of liquidity ahead.
Sellers may well engage at this juncture and in force.
From a 4-hour perspective, the environment is, indeed, bullish.
However, if the first layer of resistance holds, then the downside is compelling, especially should the price fall below the 21-moving average.
A break of support and a restest of the structure would offer an optimal entry point for bears to engage in what would be expected to be a downside extension of the daily bearish impulse.
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