CAD/JPY 3 Day Down Streak Snapped, in a Downtrend Over Past 14 Days; Bullish Engulfing Pattern in Play

CAD/JPY Price Recap

CAD/JPY, currently priced near 76.946, is up 225 pips 3.01% since yesterday, marking a reversal from the day prior — and the end of a 3 day negative run. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 11.72% from the day prior, and up 106.81% from the same day the week before. Out of the 40 instruments in the Forex asset class, CAD/JPY ended up ranking 4th for the day in terms of day-over-day price change. Below is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

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 455.8 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days CAD/JPY’s price has gone down 10 them. Moreover, we’re also seeing a bullish engulfing pattern; this may be especially noteworthy in light of the downtrend on the 14, 30 and 90 day charts, as in this context the bullish engulfing candles may indicate the bear trend may be ending.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 17 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 3.4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of divergence, pennant and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

CADJPY BUY Reasons:Bullish Pinbar on Weekly SupportWeekly SupportBullish PennantBullish TrendJoin our Free Signals Group:https://t.me/PipsTechnical85% accurate Signals