CADJPY runs into sellers again around 79.92
Canadian Dollar/Japanese Yen (CADJPY) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
CADJPY ended the week -0.16% lower at 79.78 after edging lower 1 pip (-0.01%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CADJPY as at Oct 23, 2020):
Friday's trading range has been 33 pips (0.41%), that's far below the last trading month's daily average range of 54 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CADJPY.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on September 17th, CADJPY actually lost -0.45% on the following trading day.
Prices broke below the key technical support level at 79.79 (now R1), which is likely to act as resistance going forward. After having been unable to move above 79.89 in the previous session, the pair ran into sellers again around the same price level today, missing to move higher than 79.92.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 79.40 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for CAD/JPY. Out of 58 times, CADJPY closed higher 55.17% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are GBPUSD losing -0.33% and USDCHF closing -0.31% lower. On the flipside the best performers have been EURUSD closing 0.36% higher and AUDUSD gaining 0.31%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been EURGBP surging 0.71% and EURSGD closing 0.47% higher. The worst performers of the day have been GBPPLN tanking -0.81% and GBPCHF closing -0.65% lower. Read more