CAD/JPY 3 Day Up Streak Ended, Crosses 20 Day Moving Average; in a Downtrend Over Past 30 Days

CAD/JPY Price Recap

CAD/JPY is up 45 pips (0.55%) since yesterday (with its current price near 83.083), marking the 2nd day in a row an increase has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 1.41% from the day prior, but down 41.21% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 7th yesterday in terms of percentage price change. Let’s take a look at price chart of CAD/JPY.

CAD/JPY Technical Analysis

First things first: CAD/JPY crossed above its 20 day moving average yesterday. 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 50 day average, which is 3.7 pips away. It should be noted, though, the 200 day simple moving average turned upwards, which may be a bullish sign. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed up. Or to simplify this another way, note that out of the past 10 days CAD/JPY’s price has gone up 5 them.

A final note on correlations: over the past week, CAD/CHF has been the pair most correlated with CAD/JPY — not terribly surprising, given that CAD is in both currency pairs. On the flip side, in terms of pairs with the least correlation to CAD/JPY, look no further than TRY/JPY if you’re focused on just this past week, or EUR/JPY 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 15 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 1.15, which is neutral. As for the rationale, technical traders seem to be citing the appearance of channel, fibonacci, flag, relative strength index 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.

There is a possibility of temporary retracement to suggested support line (82.80)….if so, traders can set orders based on Price Action and expect to reach short-term targets…..The price is above the 21-Day WEMA which acts as a dynamic support.