NZDJPY Long situation monthly prior to major reversal
looking at the monthly structure, we can see a strong A, B, C pattern playing out - moving to the top of the regression.
This is supported by the Stochastic being overbought.
From a COT perspective, the numbers show a rise in NZD buying throughout Jan for the leveraged funds and the inverse for the asset managers.
Shorts have been steady with a sharp rise on the week of the 2nd of Feb.
JPY data shows; mainly rising short positions from the start of the year for both asset managers & leveraged funds. Asset managers picked up more JPY longs as of the 9th of Feb and the leveraged funds have been slowly accumulating longs since the middle of Jan.
So expectation would be a rise to regression and a drop to create a bigger move down overall.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
This is supported by the Stochastic being overbought.
From a COT perspective, the numbers show a rise in NZD buying throughout Jan for the leveraged funds and the inverse for the asset managers.
Shorts have been steady with a sharp rise on the week of the 2nd of Feb.
JPY data shows; mainly rising short positions from the start of the year for both asset managers & leveraged funds. Asset managers picked up more JPY longs as of the 9th of Feb and the leveraged funds have been slowly accumulating longs since the middle of Jan.
So expectation would be a rise to regression and a drop to create a bigger move down overall.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
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