CADJPY Top-Down Analysis

Hello Traders,

Here is the Top-Down Analysis of CADJPY (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 43 - 19 Oct

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 0.786 Fib level on weekly bullish impulse.

D > We saw an over extended M formation and expected price to pull back to test the neck before continuing further to the downside. Price broke through the level to rise beyond 0.618 Fib level on last bearish impulse. Price reversed after facing rejection from daily supply zone. We can see two W formations, one got completed last week and we can set neck of second as our next target.

As per COT CAD saw addition of major Long and closure of Short positions with Short positions further reducing to least for current year, improving net positions (still in -ve). CXY further gained strength during the said week but weakened a bit last week. JPY saw addition of few Long but more Short positions reducing net positions further. JXY lost its position for the said week but ended with a Doji. However JXY improved its position last week but again ended with a Doji.

4H > After completing first W formation price pulled up but we expect it to drop for 4H demand zone and to test neck of second W formation.

Pair Correlation > CADJPY has positive correlation with GBPJPY, NZFCHF, CADCHF and NZDJPY 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