CADJPY Top-Down Analysis

AP17FX Updated   
OANDA:CADJPY   Canadian Dollar / Japanese Yen
Hello Traders,

Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 44 - 26 Oct

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 0.786 Fib level on weekly bullish impulse.

D > We saw an over extended M formation and expected price to pull back to test the neck before continuing further to the downside. Price broke through the level to rise beyond 0.618 Fib level on last bearish impulse. Price reversed after facing rejection from daily supply zone. We observed two W formations, one got completed last week and we can set neck of second as our next target.

As per COT CAD saw addition of few Long but major Short positions reducing net positions. CXY was weak during the said period but it improved its position last week. JPY saw closure of Long and addition of major Short positions reducing net positions further however N-R added few Long and closed major Short positions. JXY during the said week ended in a Doji but improved its position last week.

4H > After completing first W formation price pulled up to create double top at resistance level and dropped to face rejection at support, facing rejection and creating a double bottom. Price is now testing demand zone and we expect rejection to the downside.

Pair Correlation > CADJPY has positive correlation with EURJPY, CHFJPY and GBPJPY 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
Trade closed: target reached:
Price has formed an M formation with current drop. Price can continue to drop till next demand zone before reversing its trend. Monitor price action for confirmed reversal to enter Long.

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