CAD/JPY Moves Down For the 2nd Day In A Row, Breaks Below 50 Day Average; in an Uptrend Over Past 30 Days

CAD/JPY Price Recap

CAD/JPY is down 106 pips (1.26%) since yesterday (with its current price near 83.271), marking the 2nd 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 20.43% from the day prior, and up 43.12% 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. Here is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

First things first: CAD/JPY crossed below its 50 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 50 day average, which is 4.5 pips away. 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 14 day timeframe, which shows price moving up over that time. 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 12 buy signals on our radar and 28 sell signals. This imputes a buy/sell ratio of 0.43, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel, double top 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.

— The Resistance zone and the long term Trendline converge around the same point….— Price Just broke below the short term support trendline NOTE:— Beware of price breaking and closing above the Resistance zone/Resistance Trendline for further upward movement….WARNING: — Before you trade my idea make your own analysis.