CAD/JPY Down 15 Pips in Last 4 Hours, Price Base in Formation Over Past 14 Days; Pin Bar Pattern Appearing on Chart

CAD/JPY 4 Hour Price Update

Updated May 13, 2020 01:11 AM GMT (09:11 PM EST)

CAD/JPY is down 15 pips (0.2%) since the previous 4 hours (opening the current 4 hour candle near 76.106), marking the 3rd candle in a row a decline has happened. 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 4 hours.

CAD/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for CAD/JPY, which started today off at 76.133, up 5 pips 0.06% from the previous day. Compared to its peers in the Forex, CAD/JPY gave its buyers a return that ranked 12th in terms of percentage change since the previous day. Let’s take a look at 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 20 and 50 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 90 day horizon; over that time period, price has been moving down. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 10 days CAD/JPY’s price has gone up 6 them. 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

Of note is that traders in aggregate have opinions on CADJPY, with 5 buy signals on our radar and 27 sell signals. This imputes a buy/sell ratio of 0.19, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

The cross is approaching a trendline and has created a bearish Cypher pattern ( we can also see a shar pattern completed on 0.886% of XA leg reached by a spike of a H4 candle), in addition there is a clear hidden divergence in RSI….I suggest to open a sell trade using a good money management, if price breaks up the trendline close in loss….Good tradingFrancesco