CAD/JPY Heads Down For the 2nd Day In A Row; in a Downtrend Over Past 30 Days

CAD/JPY Price Recap

CAD/JPY is down 69 pips (0.9%) since yesterday (with its current price near 75.139), marking the 2nd day in a row a decrease has occurred. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 45.87% from the day prior, and up 197.16% 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

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 562.1 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 7 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 7 buy signals on our radar and 4 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 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!!