Hello Traders,
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market has respected downward resistance trend-line in past and price has approached the trend-line to test the same, current price level also coincides with monthly resistance. We can expect a rejection to the downside.
W > Price has approached the monthly resistance for the 5th time since June 2020. It had dropped till 0.618 Fib level, creating a major support structure there. Will price make a drop to test that key support again? Yes it is possible in long term.
D > Market has shown some volatile impulsive bullish moves with similar bearish moves. Price is now testing monthly resistance and we can expect rejection.
As per COT CAD closed Long and further added Short positions, reducing net positions, however cumulative net position with N-R has improved. CXY strengthened during the said period and after testing monthly resistance it further gained strength last week and is now testing next resistance level. We can expect correction for CXY to the downside as strong bearish divergence can be seen. JPY again saw addition of major Long and some Short positions improving net positions to highest in this year. JXY however weakened during the said period and was indecisive last week ending in a Doji. We can expect strengthening of JPY this week.
With expected weakness for CXY and strength for JXY we can expect drop for CADJPY this week.
4H > We can see loss of momentum currently with upper rejection wick. Market closed the week with rejection at current level however closure of 15 M candle was bullish. We will monitor price action on lower timeframes for a bearish direction and good risk to reward Short entry.
Recommendation > Keep a watch for intraday gains volatile bearish and bullish moves.
Pair Correlation > CADJPY has positive correlation with EURJPY 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
AP17FX
Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market has respected downward resistance trend-line in past and price has approached the trend-line to test the same, current price level also coincides with monthly resistance. We can expect a rejection to the downside.
W > Price has approached the monthly resistance for the 5th time since June 2020. It had dropped till 0.618 Fib level, creating a major support structure there. Will price make a drop to test that key support again? Yes it is possible in long term.
D > Market has shown some volatile impulsive bullish moves with similar bearish moves. Price is now testing monthly resistance and we can expect rejection.
As per COT CAD closed Long and further added Short positions, reducing net positions, however cumulative net position with N-R has improved. CXY strengthened during the said period and after testing monthly resistance it further gained strength last week and is now testing next resistance level. We can expect correction for CXY to the downside as strong bearish divergence can be seen. JPY again saw addition of major Long and some Short positions improving net positions to highest in this year. JXY however weakened during the said period and was indecisive last week ending in a Doji. We can expect strengthening of JPY this week.
With expected weakness for CXY and strength for JXY we can expect drop for CADJPY this week.
4H > We can see loss of momentum currently with upper rejection wick. Market closed the week with rejection at current level however closure of 15 M candle was bullish. We will monitor price action on lower timeframes for a bearish direction and good risk to reward Short entry.
Recommendation > Keep a watch for intraday gains volatile bearish and bullish moves.
Pair Correlation > CADJPY has positive correlation with EURJPY 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
AP17FX