Hello Traders,
Here is the Top-Down Analysis of AUDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 26 Oct
M > Price reached monthly support/ supply zone creating W formation on its way up. Price dropped to test the neck and continued to drop further to test weekly support level. However after a huge impulsive move we expect price to drop at least till 0.382 Fib level for correction before continuing further. A drop till 0.382 level will create an inverted H & S pattern as well. Hence for long term we have bearish target.
W > Price dropped till 0.786 Fib level of last bullish impulse that coincides with weekly support, faced rejection and moved upwards.
D > On its way down price created an M formation and after facing rejection at daily demand zone it moved up to test neck of M and complete the formation. Price dropped again to daily supply zone and as off now has created a double bottom. Price has again created an M formation and we expect it to rise to test its neck before continuing further with downward move.
As per COT AUD saw closure of more Short than Long positions, improving net positions. AXY weakened during the said week but gained some lost position last 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 can expect AUD to continue with weakness this week.
4H > On its way down and subsequent way up after rejection price is in a range of about 60 pips. We expect its to move up before reversing for a downward move.
Pair Correlation > AUDJPY has positive correlation with AUDUSD, NZDJPY, AUDCHF, EURJPY and Silver and negative correlation with EURAUD.
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 AUDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 44 - 26 Oct
M > Price reached monthly support/ supply zone creating W formation on its way up. Price dropped to test the neck and continued to drop further to test weekly support level. However after a huge impulsive move we expect price to drop at least till 0.382 Fib level for correction before continuing further. A drop till 0.382 level will create an inverted H & S pattern as well. Hence for long term we have bearish target.
W > Price dropped till 0.786 Fib level of last bullish impulse that coincides with weekly support, faced rejection and moved upwards.
D > On its way down price created an M formation and after facing rejection at daily demand zone it moved up to test neck of M and complete the formation. Price dropped again to daily supply zone and as off now has created a double bottom. Price has again created an M formation and we expect it to rise to test its neck before continuing further with downward move.
As per COT AUD saw closure of more Short than Long positions, improving net positions. AXY weakened during the said week but gained some lost position last 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 can expect AUD to continue with weakness this week.
4H > On its way down and subsequent way up after rejection price is in a range of about 60 pips. We expect its to move up before reversing for a downward move.
Pair Correlation > AUDJPY has positive correlation with AUDUSD, NZDJPY, AUDCHF, EURJPY and Silver and negative correlation with EURAUD.
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
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