CAD/JPY Down 17 Pips; Breaks Below 20 and 100 Day Averages

CAD/JPY Price Recap

CAD/JPY is down 17 pips (0.2%) since yesterday (with its current price near 82.815), marking the 4th day in a row a decline has happened. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 10.37% from the day prior, and up 341.27% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 25th yesterday in terms of percentage price change. Let’s take a look at price chart of CAD/JPY.

CAD/JPY Technical Analysis

Moving average crossovers are always interesting, so let’s start there: CAD/JPY crossed below its 20 and 100 day moving averages 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 100 day average, which is 0.3 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 14 days CAD/JPY’s price has gone down 8 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 6 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.38, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on; below is a short snippet from it to give you a taste.

We need some sort of relief from the recent drops in price and we have price bouncing right off the 61.8 fib on this bad boy looking for long positions solid 1-2/3 r:r and its pay day