CAD/JPY Down 31 Pips, Crosses 20 Day Moving Average; in a Downtrend Over Past 30 Days

CAD/JPY Price Recap

The choppiness in the recent daily price action of CAD/JPY continues; to start today, it comes in at a price of 82.768 US dollars, down 31 pips (0.38%) since yesterday. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 31.85% from the day prior, but down 6.14% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 33rd yesterday in terms of percentage price change. Below is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

Notably, CAD/JPY crossed below 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 20 day average, which is 15.3 pips away. Volatility for CAD/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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 30 days CAD/JPY’s price has gone down 17 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 14 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 1.75, which is bullish. As for the rationale, technical traders seem to be citing the appearance of flag 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.

Good rejection of the recently broken resistance now turned support. Very good rejections off the levels of the fib, i expect a good movement to occur.