Hello Traders,
Here is the Top-Down Analysis of AUDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price reached monthly support/ supply zone and created W formation on its way up. Price dropped to test the neck and continued to drop further to test weekly support level. However with a huge impulse we expect a drop at least till 0.382 Fib level for correction before continuing further. A drop till 0.382 level will create a nice H & S pattern as well. Hence for long term we can have bearish target.
W > Price dropped till 0.786 Fib level of last bullish impulse that coincides with weekly support, faced rejection and moved upwards. Price is in process of making LH and LL.
D > We saw an M formation and expected price to move up to test the neck which price did, it has now broken through the neck to test daily resistance level. We do not see loss of momentum as of now but do expect a reversal here or at supply zone.
As per COT AUD saw addition of major Long and Short positions, increasing net positions. AXY gained strength during the said week, it improved its position last week. JPY had closure of Long and addition of Short reducing net positions, however Commercials added both Long and Short positions, increasing open interest. This made JXY slightly recover its position for the said week. However JXY was indecisive last week ending with Gravestone Doji.
4H > Price is making HH and HL on 4H chart and trend is bullish, however we do not see any bullish target as of now. Hence we need to monitor price action for reversal and break of last LL for confirmation of bearish move.
Pair Correlation > AUDJPY has positive correlation with AUDUSD, NZDUSD, NZDJPY, CADJPY, EURUSD, EURJPY, NZDJPY and AUDCHF and negative correlation with USDCAD, USDCHF and EURAUD, both across Daily and Weekly timeframe.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of AUDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price reached monthly support/ supply zone and created W formation on its way up. Price dropped to test the neck and continued to drop further to test weekly support level. However with a huge impulse we expect a drop at least till 0.382 Fib level for correction before continuing further. A drop till 0.382 level will create a nice H & S pattern as well. Hence for long term we can have bearish target.
W > Price dropped till 0.786 Fib level of last bullish impulse that coincides with weekly support, faced rejection and moved upwards. Price is in process of making LH and LL.
D > We saw an M formation and expected price to move up to test the neck which price did, it has now broken through the neck to test daily resistance level. We do not see loss of momentum as of now but do expect a reversal here or at supply zone.
As per COT AUD saw addition of major Long and Short positions, increasing net positions. AXY gained strength during the said week, it improved its position last week. JPY had closure of Long and addition of Short reducing net positions, however Commercials added both Long and Short positions, increasing open interest. This made JXY slightly recover its position for the said week. However JXY was indecisive last week ending with Gravestone Doji.
4H > Price is making HH and HL on 4H chart and trend is bullish, however we do not see any bullish target as of now. Hence we need to monitor price action for reversal and break of last LL for confirmation of bearish move.
Pair Correlation > AUDJPY has positive correlation with AUDUSD, NZDUSD, NZDJPY, CADJPY, EURUSD, EURJPY, NZDJPY and AUDCHF and negative correlation with USDCAD, USDCHF and EURAUD, both across Daily and Weekly timeframe.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
