CADJPY Top-Down Analysis
Hello Traders,
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 41 - 05 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.
D > We saw an over extended M formation weeks ago and expected price to return back to test the neck before continuing further to the downside. Price is slowly moving to our target.
As per COT CAD saw closure of both Long and Short positions, N-R saw addition of Long and Short positions and Commercials saw closure of both Long and Short, confirming weakness of CAD for the said week. CXY gained strength last week. JPY had closure of both Long and Short reducing net positions, this made JXY weak for the said week. Whereas JXY slightly recovered its position last week.
4H > Price was stuck in a range of 50 pips, it has broken the range and now moving to the upside to test the neck and complete M formation.
Pair Correlation > CADJPY has positive correlation with AUDJPY, EURJPY 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 you can share your view and ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 41 - 05 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.
D > We saw an over extended M formation weeks ago and expected price to return back to test the neck before continuing further to the downside. Price is slowly moving to our target.
As per COT CAD saw closure of both Long and Short positions, N-R saw addition of Long and Short positions and Commercials saw closure of both Long and Short, confirming weakness of CAD for the said week. CXY gained strength last week. JPY had closure of both Long and Short reducing net positions, this made JXY weak for the said week. Whereas JXY slightly recovered its position last week.
4H > Price was stuck in a range of 50 pips, it has broken the range and now moving to the upside to test the neck and complete M formation.
Pair Correlation > CADJPY has positive correlation with AUDJPY, EURJPY 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 you can share your view and ask questions.
Thank You
AP17FX
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