Hello Traders,
Here is the Top-Down Analysis of USDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market was moving in a wedge with horizontal support however price has broken the support to the downside and we will now look at downward channel as a guide.
W > Inside the channel we can see Bearish Trend in a downward wedge. Price tested bottom of wedge as support and moved up to test weekly resistance. After a false breakout of wedge price dropped.
D > Price has dropped till 0.786 Fib level of last bullish impulse and closed the day will rejection to the upside. We can see an M formation and expect price to move bullish and test neck of M to complete the formation.
As per COT JPY saw closure of major Long and some Short positions reducing net positions massively in comparison with last report, bringing both Long and Short to least in current year. JXY dropped during the said period but gained strength last week.
4H > We can see loss of momentum but do not have confirmed reversal price action, though can see bullish divergence.
Pair Correlation > USDJPY does not have any strong correlation with any pair on daily timeframe.
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 USDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market was moving in a wedge with horizontal support however price has broken the support to the downside and we will now look at downward channel as a guide.
W > Inside the channel we can see Bearish Trend in a downward wedge. Price tested bottom of wedge as support and moved up to test weekly resistance. After a false breakout of wedge price dropped.
D > Price has dropped till 0.786 Fib level of last bullish impulse and closed the day will rejection to the upside. We can see an M formation and expect price to move bullish and test neck of M to complete the formation.
As per COT JPY saw closure of major Long and some Short positions reducing net positions massively in comparison with last report, bringing both Long and Short to least in current year. JXY dropped during the said period but gained strength last week.
4H > We can see loss of momentum but do not have confirmed reversal price action, though can see bullish divergence.
Pair Correlation > USDJPY does not have any strong correlation with any pair on daily timeframe.
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