NZD/JPY - Bullish continuation

OANDA:NZDJPY   New Zealand Dollar / Japanese Yen
Hello traders, welcome to the first long video analysis for the NZDJPY pair on this channel.
Let's dive into the analysis for NZDJPY.

Currently, we are looking at the 1-day timeframe.

As we can see, the pair is in an uptrend, forming higher highs and higher lows.

In summary, we can confidently label this as a bullish trend on the daily timeframe.
Now, let's move to the 4-hour timeframe.

Here, we notice that the price has recently broken a structure.

To make an informed judgment about where the pair may head next, we need to understand the recent price structure.

Interestingly, the price has experienced a strong bullish rally, also known as a bullish impulse move. This indicates a sharp surge in the buying direction.

This significant movement of around 3.25% within just 1-2 days demonstrates the current strength in the bullish trend.

Considering the breakout of the structure and the bullish impulse move, it becomes evident that the trend is healthy and robust.

As trend traders, we prefer to go with the market flow and avoid initiating sell trades in such a strong bullish environment.

Instead, we will patiently wait for the price to correct before considering further upside potential.

Given the sizable move already made by the pair, it has become relatively expensive at its current level.

Hence, we will wait for a logical level to enter the trade, where our stop loss can be minimized, and our potential targets can be significant.

At this moment, there isn't a clear stop loss zone. However, our target will be the nearest swing high, which could potentially act as resistance on a larger timeframe.

By entering the trade near a support zone with a low stop loss and aiming for a potential 1:2 or 1:3 risk-reward ratio, we enhance the odds of a successful trade.

Stay tuned for more insightful analyses and trading strategies for the NZDJPY pair on this channel.

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