CAD/JPY Moves Down For the 2nd Day In A Row, in a Downtrend Over Past 30 Days; Price Base in Formation Over Past 14 Days

CAD/JPY Price Recap

CAD/JPY is down 5 pips (0.06%) since yesterday (with its current price near 82.429), marking the 2nd day in a row a decrease has occurred. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 16.02% from the day before — and down 31.61% from the same day the week before. Relative to other instruments in the Forex asset class, CAD/JPY ranked 22nd yesterday in terms of percentage price change. Below is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

Coming into today the current price of CAD/JPY is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. Volatility for CAD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Traders interested in playing the ranges may wish to consider that the unclear trend on the 14 day chart, coupled with price being close to the upper bollinger band may be signalling a short opportunity. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed up. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone down 10 out of the past 14 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 2 buy signals on our radar and 24 sell signals. This imputes a buy/sell ratio of 0.08, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of channel and fibonacci technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

broken the bulish trend and retested the flipzone also EMA14.TP 1 2 and 3 are FIB 121.4% , 138.2% taking high SL because possible upcoming head and sholders pattern.going short with patience stoploss to breakeven after TP1