Hello Traders,
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 46 - Nov 09
M > Market is moving in a downward channel. Price faced rejection at resistance level of trend-line creating double top and moved down.
W > Price dropped to test weekly support and faced rejection. This support also coincided with 0.768 Fib level on weekly bullish impulse. Price dropped again to test this support and faced rejection.
D > We saw an over extended M formation and as expected price moved upside to test its neck and complete the formation. Price continued to move further to the upside before turning bearish.
As per COT CAD closed major Long and few Short positions, reducing net positions a bit further. CAD saw huge dump during the said period with price showing some sign of recovery during the later half, however it gained strength last week and is now testing weekly resistance. We can see bearish divergence for CXY and can expect correction soon. JPY saw addition of Long and closure of Short positions improving net positions. Commercials have added both Long and Short positions, bringing their Short positions to highest in current year, in effect increasing total open interest in JPY. JXY has been gaining strength and it further gained strength last week on account of weak USD. We can expect some correction for JPY in short term.
4H > We saw volatility due to instability in market but price has finally turned bearish and has just tested supply level as resistance before continuing with downward move. We can see a W formation and can expect price to drop till its neck at least.
Pair Correlation > CADJPY has positive correlation with CHFJPY and EURJPY and negative correlation with USDCAD.
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 CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 46 - Nov 09
M > Market is moving in a downward channel. Price faced rejection at resistance level of trend-line creating double top and moved down.
W > Price dropped to test weekly support and faced rejection. This support also coincided with 0.768 Fib level on weekly bullish impulse. Price dropped again to test this support and faced rejection.
D > We saw an over extended M formation and as expected price moved upside to test its neck and complete the formation. Price continued to move further to the upside before turning bearish.
As per COT CAD closed major Long and few Short positions, reducing net positions a bit further. CAD saw huge dump during the said period with price showing some sign of recovery during the later half, however it gained strength last week and is now testing weekly resistance. We can see bearish divergence for CXY and can expect correction soon. JPY saw addition of Long and closure of Short positions improving net positions. Commercials have added both Long and Short positions, bringing their Short positions to highest in current year, in effect increasing total open interest in JPY. JXY has been gaining strength and it further gained strength last week on account of weak USD. We can expect some correction for JPY in short term.
4H > We saw volatility due to instability in market but price has finally turned bearish and has just tested supply level as resistance before continuing with downward move. We can see a W formation and can expect price to drop till its neck at least.
Pair Correlation > CADJPY has positive correlation with CHFJPY and EURJPY and negative correlation with USDCAD.
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
