Hello Traders,
Here is the Top-Down Analysis of NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market was moving in a downward channel, however it broke resistance to the upside last month. Price has tested monthly resistance.
W > We can see W formations but their neck is in the channel that market will have to renter back by breaking its resistance, now as support.
D > Market was making its fresh move in a rising channel but it broke out of that as well to have a false break out above monthly resistance but reversal can be seen with bearish engulfing candle.
As per COT NZD further added few Long but closed Short bringing Long to the highest for the year and net positions to highest for the year, ZXY has gained strength since all of November and closed last week with rejection after testing June 2018 level as resistance. We can expect correction to the downside for NZD. JPY again saw addition of major Long and some Short positions improving net positions to highest in this year. JXY however weakened during the said period and was indecisive last week ending in a Doji. We can expect strengthening of JPY this week.
With weak NZD and strong JPY drop of NZDJPY is a expected.
4H > Price dropped to create a LL and it is now making pull back for a LH, a drop will provide bearish confirmation with a nice Short entry. We will face few demand zones that may pause price on its way down.
Pair Correlation > NZDJPY has positive correlation with NZDUSD, NZDCHF, AUDUSD, NZDCAD, GBPUSD and GBPJPY and negative correlation with GBPNZD and EURNZD.
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 NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market was moving in a downward channel, however it broke resistance to the upside last month. Price has tested monthly resistance.
W > We can see W formations but their neck is in the channel that market will have to renter back by breaking its resistance, now as support.
D > Market was making its fresh move in a rising channel but it broke out of that as well to have a false break out above monthly resistance but reversal can be seen with bearish engulfing candle.
As per COT NZD further added few Long but closed Short bringing Long to the highest for the year and net positions to highest for the year, ZXY has gained strength since all of November and closed last week with rejection after testing June 2018 level as resistance. We can expect correction to the downside for NZD. JPY again saw addition of major Long and some Short positions improving net positions to highest in this year. JXY however weakened during the said period and was indecisive last week ending in a Doji. We can expect strengthening of JPY this week.
With weak NZD and strong JPY drop of NZDJPY is a expected.
4H > Price dropped to create a LL and it is now making pull back for a LH, a drop will provide bearish confirmation with a nice Short entry. We will face few demand zones that may pause price on its way down.
Pair Correlation > NZDJPY has positive correlation with NZDUSD, NZDCHF, AUDUSD, NZDCAD, GBPUSD and GBPJPY and negative correlation with GBPNZD and EURNZD.
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
