Hello Traders,
Here is the Top-Down Analysis of GBPJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 26 Oct
M > Market is respecting downward resistance trend-line. Price faced rejection at resistance level and moved down. Price dropped to complete W formation.
W > We saw an M formation and expected price to rise up to test the neck as our target. However price reversed short of our target from 0.5 Fib level on last bearish impulse.
D > Price is unable to break daily supply zone it created while dropping to create M formation. Neck of M is on top of supply zone where price is getting rejected at its lower end itself. Price made another attempt but faced rejection, created a double top. However price is also not able to break next supply zone now turned demand zone. Price is moving in a range of about 200 pips for past 4 weeks. We can look at targets after price breaks out from this range.
As per COT GBP saw addition of Long and closure of Short positions further improving net positions though still in -ve. BXY however weakened during the said week and ended last week in a Doji after strong buying pressure during start of the 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.
We must note that in month of June and July BXY made all bullish move while having negative net positions, this ride was because of weak DXY and not due to strength of BXY. Hence we expect a realtime correction to the downside soon for all GBP pairs.
4H > Price is dropping after facing rejection from supply zone. We will monitor price action for breakout from current range.
Currency Correlation > Price has positive correlation with GBPUSD, GBPCHF, GBPCAD, CADJPY and EURJPY and negative correlation with EURGBP.
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 GBPJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 26 Oct
M > Market is respecting downward resistance trend-line. Price faced rejection at resistance level and moved down. Price dropped to complete W formation.
W > We saw an M formation and expected price to rise up to test the neck as our target. However price reversed short of our target from 0.5 Fib level on last bearish impulse.
D > Price is unable to break daily supply zone it created while dropping to create M formation. Neck of M is on top of supply zone where price is getting rejected at its lower end itself. Price made another attempt but faced rejection, created a double top. However price is also not able to break next supply zone now turned demand zone. Price is moving in a range of about 200 pips for past 4 weeks. We can look at targets after price breaks out from this range.
As per COT GBP saw addition of Long and closure of Short positions further improving net positions though still in -ve. BXY however weakened during the said week and ended last week in a Doji after strong buying pressure during start of the 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.
We must note that in month of June and July BXY made all bullish move while having negative net positions, this ride was because of weak DXY and not due to strength of BXY. Hence we expect a realtime correction to the downside soon for all GBP pairs.
4H > Price is dropping after facing rejection from supply zone. We will monitor price action for breakout from current range.
Currency Correlation > Price has positive correlation with GBPUSD, GBPCHF, GBPCAD, CADJPY and EURJPY and negative correlation with EURGBP.
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