The price on NZDJPY has broken the level which acts as a support level on daily time frame. This support level is important for NZDJPY which has been traded in ‘the range’ lately.
Price has been respected the level very well in the past and two days ago price has broken the level. This old daily support level now acts as the new resistance level.
NZDJPY daily chart
On the 4-hour chart below, we can see that price is on its way to retest the old support/new resistance level. With the recent momentum on NZDJPY still shows some weaknesses, I will start hunting for a short opportunity if the price could form a bearish signal around the new resistance level.
NZDJPY 4-hour chart