Hello Traders,
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 45 - Nov 02
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 0.768 Fib level on weekly bullish impulse. Price dropped again to test this support and faced rejection.
D > Price has created an over extended M formation and we can expect a pull to the upside to test its neck before continuing with bearish move. We can already see signs of trend reversal.
As per COT CAD has not seen much movement for Long in last 2 weeks but it reported closure of Short positions. In fact N-R have more open Long positions than Institutions. CXY improved its position for the said week however it saw huge dump last week with price showing some sign of recovery end of the week. We can expect further recovery this 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.
4H > We can see an inverted H & S pattern at weekly support and we also see bullish divergence, we can expect a move to the upside.
Pair Correlation > CADJPY has positive correlation with EURJPY, CHFJPY and GBPJPY and negative correlation with USDCAD.
Thank You
AP17FX
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 45 - Nov 02
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 0.768 Fib level on weekly bullish impulse. Price dropped again to test this support and faced rejection.
D > Price has created an over extended M formation and we can expect a pull to the upside to test its neck before continuing with bearish move. We can already see signs of trend reversal.
As per COT CAD has not seen much movement for Long in last 2 weeks but it reported closure of Short positions. In fact N-R have more open Long positions than Institutions. CXY improved its position for the said week however it saw huge dump last week with price showing some sign of recovery end of the week. We can expect further recovery this 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.
4H > We can see an inverted H & S pattern at weekly support and we also see bullish divergence, we can expect a move to the upside.
Pair Correlation > CADJPY has positive correlation with EURJPY, CHFJPY and GBPJPY and negative correlation with USDCAD.
Thank You
AP17FX
