CAD/JPY Up 20 Pips, Crosses 100 Day Moving Average; in a Downtrend Over Past 30 Days

CAD/JPY Price Recap

The choppiness in the recent daily price action of CAD/JPY continues; to start today, it comes in at a price of 82.631 US dollars, up 20 pips (0.25%) since yesterday. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 18.52% from the day before — and down 47.89% from the same day the week before. Out of the 40 instruments in the Forex asset class, CAD/JPY ended up ranking 9th for the day in terms of day-over-day price change. Let’s take a look at price chart of CAD/JPY.

CAD/JPY Technical Analysis

First things first: CAD/JPY crossed above its 100 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 100 day average, which is 7.5 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Rangebound traders may wish to note that CAD/JPY is getting close to its upper bollinger band, which, when coupled with the lack of trend on a 14 day timeframe, may be an opportunity for short sellers. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed up. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days CAD/JPY’s price has gone down 17 them. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing morning star pattern appearing here.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CADJPY, with 8 buy signals on our radar and 27 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 a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Short setup on CADJPY. Price forming rounding top on 1 hr after hitting resistance at trend line. Topping signals on RSI and MACD.