GBPJPY Top-Down Analysis

Hello Traders,

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

Week 41 - 05 Oct

M > Market is respecting downward resistance trend line. Price faced rejection from resistance line and moved down. Price dropped and completed W formation.

W > We can see an M formation and expect price to rise up test the neck.

D > In its bearish move price respected all demand and supply zones created during its last upward move. After reversal price paused for consolidation at first supply zone, price is now making upward move towards second supply zone which also coincides with our target.

As per COT GBP saw closure of Long and addition of major short positions bringing net position to -ve, whereas N-R saw closure of both Long and Short, Commercials saw addition of Long and closure of Short. BXY was weak for the said week but 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 > Price has broken supply zone and its now making upward move towards our target.

Currency Correlation > Price has positive correlation with GBPUSD and negative correlation with EURGBP.

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