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CAD/JPY Technical Analysis - CAD/JPY Trading: 2020-11-04
CAD/JPY Technical Analysis Summary
Above 80,5
Buy Stop
Below 77,9
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
CAD/JPY Chart Analysis
CAD/JPY Technical Analysis
On the daily timeframe, CADJPY: D1 bounced off the long-term uptrend support line. Before opening a position, it must overcome the resistance line of the short-term downtrend. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if CADJPY rises above its last high fractal and 200-day moving average line: 80.5. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the lower Bollinger line and the last lower fractal: 77.9. After opening a pending order, we move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (77.9) without activating the order (80.5), it is recommended to delete the order: some internal changes in the market have not been taken into account.
Fundamental Analysis of Forex - CAD/JPY
Growth in world oil prices and Democrat Joe Biden's victory in the US presidential election may help strengthen the Canadian dollar. Will the CADJPY quotes continue to grow?
The upward movement signifies the Canadian dollar strengthening against the Japanese yen. The US Democrats promised earlier to allocate a $2.2-3.4 trillion bailout to the American economy if their candidate Joe Biden wins the presidential elections on November 3. This could weaken the US dollar and drive up commodity prices, including oil. Since hydrocarbons are the backbone of Canadian exports, rising world oil prices are helping to strengthen the Canadian dollar. The statements by OPEC+ members to postpone the increase in oil production by 2 million barrels per day, scheduled for early January 2021, could be an additional positive factor. The decision is to be made on November 30 and will depend on the current oil prices. The Bank of Canada rate is 0.25%. The Bank of Japan rate is negative (-0.1%). Slow recovery of the Japanese economy may contribute to the weakening of the yen. In particular, this is evidenced by weak data on housing construction and retail sales in September, as well as deflation. No major economic data is expected in Japan this week. In Canada, significant statistics on the labor market and business activity for October will be released on Friday, as well as statements by representatives of the Bank of Canada.
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