Hello Traders,
Here is the Top-Down Analysis of NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Market is moving in a downward channel, price dropped from resistance of channel.
W > Price tested resistance level thrice and faced rejection creating triple top. We can see a W formation and expect price to drop and test its neck. However after last rise price is moving in a range of about 300 pips.
D > Price dropped till weekly demand zone again but faced rejection creating double bottom. Price moved up to test weekly supply zone and after rejection started dropping again. We will will set 3 bearish targets.
1. Weekly demand zone where price created double bottom last time.
2. Demand zone at odd candle (66.67) on D chart, above neck of W formation.
3. Neck of W formation.
As per COT NZD saw addition of both Long and Short further increasing net positions, confirming further improved strength of ZXY for the said week. ZXY has been gaining strength slowly since June 2020. ZXY however weakened improved 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 > Price is now testing resistance level, we will wait for its reversal and turn into bearish.
Pair Correlation > NZDJPY has positive correlation with NZDUSD, AUDJPY, NZDCHF, AUDCHF and CADJPY and negative correlation with USDCAD, EURNZD and 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 NZDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Market is moving in a downward channel, price dropped from resistance of channel.
W > Price tested resistance level thrice and faced rejection creating triple top. We can see a W formation and expect price to drop and test its neck. However after last rise price is moving in a range of about 300 pips.
D > Price dropped till weekly demand zone again but faced rejection creating double bottom. Price moved up to test weekly supply zone and after rejection started dropping again. We will will set 3 bearish targets.
1. Weekly demand zone where price created double bottom last time.
2. Demand zone at odd candle (66.67) on D chart, above neck of W formation.
3. Neck of W formation.
As per COT NZD saw addition of both Long and Short further increasing net positions, confirming further improved strength of ZXY for the said week. ZXY has been gaining strength slowly since June 2020. ZXY however weakened improved 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 > Price is now testing resistance level, we will wait for its reversal and turn into bearish.
Pair Correlation > NZDJPY has positive correlation with NZDUSD, AUDJPY, NZDCHF, AUDCHF and CADJPY and negative correlation with USDCAD, EURNZD and 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
