CAD/JPY 2 Day Up Streak Snapped; Eyes 20, 50 and 100 Day Averages

CAD/JPY Price Recap

82.859 (USD) was the opening price of the day for CAD/JPY, resulting in yesterday being a day in which price moved down 17 pips 0.2% from the day prior. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 75.91% from the day prior, but down 26.84% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 27th yesterday in terms of percentage price change. The price chart of CAD/JPY below illustrates.

CAD/JPY Technical Analysis

Coming into today CAD/JPY is now close to its 20, 50, 100 and 200 day averages, located at 82.7182, 83.1769, 82.6424 and 81.9803 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 14.1 pips away. Related to the moving average crossover is that CAD/JPY may have broken its trend on the 14 and 90 day basis, as the trend’s momentum appears to be slowing down. Volatility for CAD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Or to simplify this another way, note that out of the past 30 days CAD/JPY’s price has gone down 16 them.

A final note on correlations: over the past 7 days, CAD/CHF has been the pair most correlated with CAD/JPY — not terribly surprising, given that CAD is in both currency pairs. Alternatively, regarding pairs with the lowest correlation to CAD/JPY? Well, look no further than USD/CAD if you’re focused on just this past week, or USD/ZAR for a look at a broader, two week window.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 3 buy signals on our radar and 27 sell signals. This imputes a buy/sell ratio of 0.11, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

CADJPY Potential Bearish Movementwe are waiting for a momentum candle close below 82.60 to sell this oneReason:1- Regular Bearish Divergence on MACD (in red)2- Objective Wedge Pattern (in blue)3- Objective Double Top Pattern (in blue)Three confluences are enough to consider Selling CADJPY, after a break below 82.6 (in gray)