NZD/JPY Price Analysis: Bulls in control, but bearish case can be made

• 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. 

Daily chart

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. 

4-hour chart

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.