CAD/JPY Down 377 Pips, in a Downtrend Over Past 30 Days; Sentiment Strongly Favors Buyers

CAD/JPY Price Recap

CAD/JPY is down 377 pips (4.81%) since yesterday (with its current price near 74.698), marking the 3rd day in a row it has gone down. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 28.08% from the day prior, but up 173.93% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 39th yesterday in terms of percentage 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 709.1 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. For additional context, note that price has gone down 10 out of the past 14 days.

A final note on correlations: in the recent most week, CAD/CHF has been the pair most correlated with CAD/JPY — not terribly surprising, given that CAD is in both currency pairs. As for pairs with the least correlation, look no further than USD/CNH if you’re focused on just this past week, or AUD/NZD for a look at a broader, two week window.

The View From Around the Web

Of note is that traders in aggregate have opinions on CADJPY, with 12 buy signals on our radar and 3 sell signals. This imputes a buy/sell ratio of 4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of divergence 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.

Divergence spotted on 4HR – going for a long shot here, tight stop loss below the low of the spike. be great to get people’s comments, thoughts on this pair.