Hello Traders,
Here is the Top-Down Analysis of NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 45 - Nov 02
M > Market is moving in a downward channel, price tested resistance of channel and dropping after rejection. Price has already dropped till 0.382 Fib level on monthly bullish impulse.
W > Price tested resistance level thrice and faced rejection creating triple top. We can see a W formation and expect price to drop and test its neck. However for last 4 months price is moving in a range of about 300 pips.
D > As suggested last week price dropped to test weekly support and we can now see rejection wicks at support level. Price has formed a bullish flag and we can expect a reversal to the upside.
As per COT NZD saw addition of both Long and Short improving net positions to max for the year, whereas ZXY gained strength during the said week but it weakened last week. JPY saw closure of Long and major Short positions improving net positions however N-R added major Long and few Short positions, improving cumulative net positions. Commercials have added both Long and Short positions, bringing their Short positions to highest in current year, in effect increasing total open interest in JPY. JXY improved its position during the said week and further improved it last week.
NZD has been gaining strength slowly and we can expect move to the upside. However JPY being a safe heaven can strengthen on account of short term uncertainty due to Covid19 resurgence and US Elections, making price to drop.
4H > Price is currently facing rejection at support level, as evident from rejection wicks and we can also see bullish divergence. We will wait for price to break last support to the upside to enter Long.
Break of support to the downside will invalidate this idea.
Pair Correlation > NZDJPY has positive correlation with AUDUSD, AUDJPY and NZDUSD and negative correlation with EURAUD.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 45 - Nov 02
M > Market is moving in a downward channel, price tested resistance of channel and dropping after rejection. Price has already dropped till 0.382 Fib level on monthly bullish impulse.
W > Price tested resistance level thrice and faced rejection creating triple top. We can see a W formation and expect price to drop and test its neck. However for last 4 months price is moving in a range of about 300 pips.
D > As suggested last week price dropped to test weekly support and we can now see rejection wicks at support level. Price has formed a bullish flag and we can expect a reversal to the upside.
As per COT NZD saw addition of both Long and Short improving net positions to max for the year, whereas ZXY gained strength during the said week but it weakened last week. JPY saw closure of Long and major Short positions improving net positions however N-R added major Long and few Short positions, improving cumulative net positions. Commercials have added both Long and Short positions, bringing their Short positions to highest in current year, in effect increasing total open interest in JPY. JXY improved its position during the said week and further improved it last week.
NZD has been gaining strength slowly and we can expect move to the upside. However JPY being a safe heaven can strengthen on account of short term uncertainty due to Covid19 resurgence and US Elections, making price to drop.
4H > Price is currently facing rejection at support level, as evident from rejection wicks and we can also see bullish divergence. We will wait for price to break last support to the upside to enter Long.
Break of support to the downside will invalidate this idea.
Pair Correlation > NZDJPY has positive correlation with AUDUSD, AUDJPY and NZDUSD and negative correlation with EURAUD.
Thank You
AP17FX
