CADJPY closes lower for the 2nd day in a row
Canadian Dollar/Japanese Yen (CADJPY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CADJPY ended the week 1.32% higher at 76.88 after losing 24 pips (-0.31%) today. Closing below Thursday's low at 77.07, the currency confirmed its breakout through the prior session low after trading up to 54 pips below it intraday.
Daily Candlestick Chart (CADJPY as at May 22, 2020):
Friday's trading range has been 76 pips (0.99%), that's slightly above the last trading month's daily average range of 75 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CADJPY.
After trading as low as 76.53 during the day, the pair found support at the 50-day moving average at 76.57. Prices broke below the key technical support level at 77.09 (now R1), which is likely to act as resistance going forward. The last time this happened on May 15th, CADJPY actually gained 1.48% on the following trading day.
Although the forex pair is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test April's nearby high at 78.19.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for CAD/JPY. Out of 106 times, CADJPY closed higher 50.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.83% with an average market move of 0.19%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.47% and EURUSD closing -0.44% lower. On the flipside the best performers have been USDCAD closing 0.33% higher and USDCHF gaining 0.08%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDCZK surging 1.09% and USDHUF closing 0.9% higher. The worst performers of the day have been USDMXN tanking -0.58% and SGDHKD closing -0.51% lower. Read more