GBPJPY Top-Down Analysis

17 окт. 2020 г.

Hello Traders,

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

Week 43 - 19 Oct

M > Market is respecting downward resistance trend-line. Price faced rejection at resistance level and moved down. Price dropped to complete W formation.

W > We saw an M formation and expected price to rise up to test the neck as our target. However price reversed short of our target from 0.5 Fib level on last bearish impulse. We now expect price to drop near -0.272 Fib level on last bearish impulse.

D >Price faced rejection at daily supply level and is now testing next daily supply zone. We expect price to continue with bearish move and can set three targets on its way down at weekly and daily demand zones.

As per COT GBP saw closure of both Long and Short positions improving net positions but still in -ve, whereas N-R could not gauge the same path and they went opposite with addition of both Long and Short. Commercials closed both Long and Short positions, Short for them reducing further to least for current year. BXY had further improved its position during the said week but it weakened last week. JPY saw addition of few Long but more Short positions reducing net positions further. JXY was 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 has successfully created LL and with current pull back has possibly created LH. We will monitor price action for break of daily supply zone.

Currency Correlation > GBPJPY has positive correlation with GBPUSD, GBPCHF, EURJPY, GBPCAD and CADJPY and negative correlation with EURGBP and 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