(Last Updated September 9, 2020 15:14 GMT)
At the time of this writing, CADJPY’s rate is up 900 pips (0.11%) from the hour prior. It’s been a feast for bulls operating on an hourly timeframe, as CADJPY has now gone up 5 of the past 5 hours. 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 bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.
CADJPY End of Day Recap
Updated 00:30 GMT (04:30 EST)
The choppiness in the recent daily price action of CADJPY continues; to start today, it came in at a price of 81.079, down 21 pips (0.26%) since yesterday. Relative to other instruments in the Forex asset class, CADJPY ranked 30th yesterday in terms of percentage price change. Below is a price chart of CADJPY.
CADJPY Technical Analysis
The first thing we should note is that CADJPY is now close to its 20, 50 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 20 day average, which is 44.3 pips away. Volatility for CADJPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 30 days CADJPY’s price has gone up 16 them.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on CADJPY, with 13 buy signals on our radar and 22 sell signals. This imputes a buy/sell ratio of 0.59, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
Yesterday the price showed a very sharp and strong decline….Therefore, I expect the price to go up soon….also, the price is now in the channel and therefore its target now is the support line.