CAD/JPY Up 2 Pips Over Past 4 Hours; Pin Bar Pattern Appearing on Chart

CAD/JPY 4 Hour Price Update

Updated July 09, 2020 09:17 AM GMT (05:17 AM EST)

CAD/JPY is up 2 pips (0.02%) since the previous 4 hours (opening the current 4 hour candle near 79.425), marking the 2nd candle in a row an upward move has occurred. Relative to other instruments in the Forex asset class, CAD/JPY ranked 17th the previous 4 hours in terms of percentage price change.

CAD/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

CAD/JPY entered today at 79.377, down 0 pips (0%) from the previous day. Compared to its peers in the Forex, CAD/JPY gave its buyers a return that ranked 30th in terms of percentage change since the previous day. The price chart of CAD/JPY below illustrates.

CAD/JPY Technical Analysis

The first thing we should note is that 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. 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 46.6 pips away. Volatility for CAD/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 10 days CAD/JPY’s price has gone up 6 them. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

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 11 sell signals. This imputes a buy/sell ratio of 1.55, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

CAD/JPY’s Interim Bulls Seem Deceptive, Major Downtrend Still Imminent On Head & Shoulder Pattern – Trade & Hedging Setup: CADJPY’s interim bulls, in the minor trend, appear to be exhausted at stiff resistance levels of 79.700 , the failure swings are driving the short-term trend in sideways from the last couple of days, any dip below 78.947 level (i.e. 21-DMA) and 78.500 area, is most likely to resume bearish trend (refer daily chart)….Currently, as the bears attempt to nudge below 7DMAs (79.251) upon shooting star pattern….On a broader perspective, the consolidation phase in the major trend now seems to be vulnerable (refer monthly chart), the major downtrend of this pair which has been in the consolidation phase since December 2015 has now been signalling weakness again upon breach below the neckline of head & shoulder pattern.