CAD/JPY Up 19 Pips, Crosses 20 Day Moving Average; Doji Pattern Appearing on Chart

CAD/JPY Price Recap

CAD/JPY is up 19 pips (0.23%) since yesterday (with its current price near 83.025), marking the 2nd day in a row an upward move 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 37.86% from the day before — and down 50.11% from the same day the week before. Out of the 40 instruments in the Forex asset class, CAD/JPY ended up ranking 4th for the day in terms of day-over-day price change. The price chart of CAD/JPY below illustrates.

CAD/JPY Technical Analysis

Moving average crossovers are always interesting, so let’s start there: CAD/JPY crossed above its 20 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 13.3 pips away. Related to the moving average crossover is that CAD/JPY’s momentum/trend on a 14 and 30 day bases may be decelerating. Volatility for CAD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone down 16 out of the past 30 days. Also, candlestick traders! Note we see doji pattern appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 6 buy signals on our radar and 15 sell signals. This imputes a buy/sell ratio of 0.4, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel, 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 has most recently broken the ascending trend-line of a higher time-frame ascending channel….After the break of structure, the market has created a bear flag which is ascending in a corrective manner….On the 1 hour time-frame we can see a double top formation which indicates a bear market ensuing.