Hello Traders,
Here is the Top-Down Analysis of EURJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price is moving in a triangle. It moved up to test monthly resistance that had pushed price massively down last time. We saw a W formation and price dropped to test its neck and complete the formation. This level also coincided with 0.382 Fib level on last bullish impulse.
W > We saw M formation and expected price to move up to test the neck, which it did last week.
D > Price is now at daily support, now turned resistance, it can continue to move further up to test daily supply zone.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further 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.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions than Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Price is making HH and HL in its current bullish move in an arrow head formation. We expect a break to the downside but will wait for price reversal around daily supply zone.
Pair Correlation > EURJPY has positive correlation with EURUSD, XAGUSD, AUDUSD and CHFJPY.
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 EURJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price is moving in a triangle. It moved up to test monthly resistance that had pushed price massively down last time. We saw a W formation and price dropped to test its neck and complete the formation. This level also coincided with 0.382 Fib level on last bullish impulse.
W > We saw M formation and expected price to move up to test the neck, which it did last week.
D > Price is now at daily support, now turned resistance, it can continue to move further up to test daily supply zone.
As per COT EUR saw closure of Long and addition of Short, reducing net positions; improving its position for the said week. EXY further 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.
Overall EUR has huge quantum of net position, since past 2 quarters, with much more open Long positions than Short. This reflects Institution holding their Long positions for bigger gain in time to come, EUR will continue to be strong till the time we see major chunk of Short added for Institutions.
4H > Price is making HH and HL in its current bullish move in an arrow head formation. We expect a break to the downside but will wait for price reversal around daily supply zone.
Pair Correlation > EURJPY has positive correlation with EURUSD, XAGUSD, AUDUSD and CHFJPY.
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