CAD/JPY Up 7 Pips On Hourly Chart, 4 Day Up Streak Snapped; Crosses 100 Day Moving Average

Hourly Update

(Last Updated October 5, 2020 16:23 GMT)

Currently, CADJPY’s rate is up 0.065 (0.08%) from the hour prior. The hourly chart shows that CADJPY has seen 2 straight up hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on CADJPY. Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

CADJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

After 4 up days, CADJPY snaps its streak, falling 29 pips (-0.37%) over the past day to close at an exchange rate of 79.102. Out of the 40 instruments in the Forex asset class, CADJPY ended up ranking 33rd for the day in terms of price change. Here is a price chart of CADJPY.

CADJPY

CADJPY Technical Analysis

First things first: CADJPY crossed below 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 27.5 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. 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 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days CADJPY’s price has gone down 8 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on CADJPY, with 1 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 0.12, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a supply zone technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Hello Traders , Welcome to this analysis, we are looking at the CADJPY , the 1-hour timeframe.My trading strategy is based on the simplicity .Please don’t forget to FOLLOW , LIKE and COMMENT .If you like my analysis.Thank you and Good Luck!