CAD/JPY Underperforms All Forex, Down 129 Pips; in a Downtrend Over Past 14 Days

CAD/JPY Price Recap

79.981 (USD) was the opening price of the day for CAD/JPY, resulting in yesterday being a day in which price moved down 129 pips 1.58% from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 6.5% from the day prior, and up 138.27% from the same day the week before. Those trading within the Forex asset class should know that CAD/JPY was the worst performer in the class. Below is a price chart of CAD/JPY.

CAD/JPY Technical Analysis

The first thing we should note is that the current price of CAD/JPY is sitting close to its 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 200 day average, which is 204.6 pips away. It should be noted, though, the 100 day simple moving average turned downwards, which may be a bearish sign. 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

Of note is that traders in aggregate have opinions on CADJPY, with 11 buy signals on our radar and 16 sell signals. This imputes a buy/sell ratio of 0.69, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci 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.

CADJPY at a very strong support/resistance trendline….The two hits on the trendline are almost perfect Looking for price to immediately reverse now towards the next key area which is the last high with much more potential to push towards the 38.2 % fib which is also a key area as well….CADJPY BUYstart: 79.875stop loss: 79.525take profit: 81.123https://www.tradingview.com/x/ve6ixLKo/