CADJPY Up 7 Pips in Last Hour, 2 Day Down Streak Snapped; Social Sentiment Biased Towards Selling

Hourly Update

(Last Updated September 11, 2020 16:14 GMT)

At the moment, CADJPY’s rate is up 700 pips (0.09%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as CADJPY has now gone down 4 of the past 5 hours. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on CADJPY. Given that we see downtrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Of note is that the 20 hour changed directions on CADJPY; it is now pointing up. 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)

CADJPY entered today at 80.749, up 67 pips (0.84%) from the day prior. Relative to other instruments in the Forex asset class, CADJPY ranked 6th the day prior in terms of percentage price change. Below is a price chart of CADJPY.


CADJPY Technical Analysis

Notably, CADJPY 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 20 day average, which is 10.9 pips away. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 7 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 3 buy signals on our radar and 31 sell signals. This imputes a buy/sell ratio of 0.1, 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; below is a short snippet from it to give you a taste.

The price action has respected the descending trendline and form a bearish pin bar to confirm a downward pressure in the pair….The order: Type: sell-stopS/L: 38 pips – R:R | 1:3 – T/P: support zone towards the ascending trendline–*** If you like the idea, don’t be shy, click on like and comment….If you disagree, just comment 😉 | Thanks for your support!!!

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