CAD/JPY Down 112 Pips; in a Downtrend Over Past 30 Days

CAD/JPY Price Recap

75.825 (USD) was the opening price of the day for CAD/JPY, resulting in yesterday being a day in which price moved down 112 pips 1.46% 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 down 20.45% from the day prior, but up 116.96% from the same day the week before. Out of the 40 instruments in the Forex asset class, CAD/JPY ended up ranking 37th for the day in terms of day-over-day price change. Here 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 531.6 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. For additional context, note that price has gone down 11 out of the past 14 days.

A final note on correlations: over the past 7 days, CAD/JPY has been most correlated with CAD/CHF — a frequent scenario, considering CAD finds itself in both pairs. On the flip side, in terms of pairs with the least correlation to CAD/JPY, that belongs to EUR/CAD over the past 7 days, but USD/TRY over a two week period.

The View From Around the Web

Of note is that traders in aggregate have opinions on CADJPY, with 14 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 2.8, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a triangle technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Ascending Triangle is a pattern that signifies the continuation of the trend, when the trend is up. But if it occurs in a trend that is started by a downtrend, this pattern should signal a reversal. We will see!!