CAD/JPY Heads Down For the 3rd Day In A Row; Eyes 20, 50 and 100 Day Averages

CAD/JPY Price Recap

CAD/JPY is down 29 pips (0.35%) since yesterday (with its current price near 82.981), marking the 3rd 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 27% from the day prior, and up 162.5% 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. Here is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

Notably, CAD/JPY is now close to its 20, 50, 100 and 200 day averages, located at 82.9045, 83.3149, 82.7958 and 82.0402 respectively, and thus may be at a key juncture along those timeframes. 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 7.6 pips away. It should be noted, though, the 50 day simple moving average turned downwards, which may be a bearish sign. Volatility for CAD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 7 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 common occurrence, given the presence of CAD in both currency pairs. As for pairs with the least correlation, that belongs to EUR/CHF over the past 7 days, but EUR/NZD over a two week period.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 10 buy signals on our radar and 22 sell signals. This imputes a buy/sell ratio of 0.45, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Price is now in a daily demand zone with the 618 fib level….Expecting a rise till the weekly supply zone….The daily demand zone is responsible for taking out a Daily supply zone.