CAD/JPY Tops All Forex, Makes Big Move Relative to Two Week Trend; Crosses 50 Day Moving Average

CAD/JPY Price Recap

The choppiness in the recent daily price action of CAD/JPY continues; to start today, it comes in at a price of 84.222 US dollars, up 136 pips (1.64%) since yesterday. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was up 9.52% from the day prior, but down 4.59% from the same day the week before. CAD/JPY outperformed all 40 assets in the Forex asset class yesterday. Congrats to its holders! In other words:

via GIPHY

Anyway, without further ado, here is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

First things first: CAD/JPY crossed above 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 100 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. Related to the moving average crossover is that CAD/JPY may have broken its trend on the 90 day basis, as the trend’s momentum appears to be slowing down. Volatility for CAD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. For additional context, note that price has gone down 16 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 17 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 1, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

• Aggressive entry• Trendline and supply resistance • Divergence on lower TF• Swing short setup