NZDJPY has been trying to make a move towards the North on the H4 chart. However, the Daily trend is still Bearish and the price is right at the Down trending Trendline’s Resistance. If we get an upside breakout at that level by an H1 candle first and then and H4 candle, there is a strong possibility that we would get a Daily breakout at that Trendline at the end of today’s trading day. Anyway let us have a look at the H4 NZDJPY chart now.
NZDJPY Price Action Analysis – 21st August 2018
The Horizontal Resistance level of 73.400 actually a Dynamic Resistance level. The Trendline’s Resistance lies here as well. We already have had an H4 Bullish Engulfing Candle. If we get an H1 breakout at the level of 73.400, then the price would head towards the level of 74.260 without having that many pauses. In fact, it would travel even further if a Daily breakout takes place. Let us have a look at the summary of the trade…
- Buy Stop Order: 73.400
- Stop loss: 72.867
- Take Profit: 74.260
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
It might be a Trend changing day on the Daily chart. Thus, if things go according to our expectation, then it would be a strong Bullish day for NZDJPY. It is an important thing to remember that a Daily breakout day has a very strong impact on the market. A number of Stop losses and Take profits are set there. Thus, a pair gets huge liquidity when a Daily breakout takes place.
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