CADJPY Up 1 Pips in Last Hour, 6 Day Down Streak Snapped; in a Downtrend Over Past 14 Days

Hourly Update

(Last Updated September 24, 2020 0:15 GMT)

Currently, CADJPY’s rate is up 110 pips (0.01%) from the hour prior. This is the 2nd hour in a row CADJPY has seen its price head up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

CADJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of CADJPY’s 6 day down streak; price ended yesterday up 23 pips (0.3%) to finish the day at a rate of 78.866. Compared to its peers in the Forex, CADJPY gave its buyers a return that ranked 7th in terms of percentage change since yesterday. Let’s take a look at price chart of CADJPY.

CADJPY

CADJPY Technical Analysis

Notably, CADJPY is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. 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 100 day average, which is 27.9 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. It should be noted, though, that a trend in the opposite direction, going up, exists on the 90 day timeframe. For additional context, note that price has gone down 7 out of the past 10 days.

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 20 sell signals. This imputes a buy/sell ratio of 0.3, 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.

We saw the breakout bring us to near 78.80 price level….From here, I am seeing a high possibility rejection off this support level as we aim for a nice 61.8 fib level retracement before further movement….There will also be a nice resistance level at the 61.8 fib level signaling a strong resistance pressure on this pair.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram