AUDJPY Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of AUDJPY (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 41 - 05 Oct
M > Price reached monthly supply zone and created W formation on its way up. Price dropped to test the neck and continued to drop further to test weekly support level.
W > Price faced rejection at weekly support and moved upward to test the neck.
D > We saw reversal at neck with loss of momentum, rejection wick and reversal candle. We now expect bearish move to continue.
As per COT AUD saw closure of major Long and addition of few Short positions, reducing net positions, N-R saw closure of both Long and Short positions and Commercials saw addition of Long and closure of Short. AXY was weak for the said week however it improved its position last week. JPY had closure of both Long and Short reducing net positions, this made JXY weak for the said week. Whereas JXY slightly recovered its position last week.
4H > Situation in 4H is very clear. On its rise up price was creating HH and HL, price dropped and made next HL hence price can continue to rise up and not come down. For reversal of trend we need see break of HL with creation of LL. Monitor price action closely.
Pair Correlation > AUDJPY has positive correlation with AUDUSD, NZDUSD, CADJPY, EURJPY, NZDJPY and AUDCHF and negative correlation with USDCAD, USDCHF 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 you can share your view and ask questions.
Thank You
AP17FX
