The CAD-JPY downtrend continues

By: Mike Kulej

The Japanese Yen has been getting stronger against most other currencies for some time now. While the prices rebounded sharply from the lows made on May 6, they failed to exceed highs preceding the selloff.



Since then, the Yen crosses turned down once again, including the Canadian Dollar-Japanese Yen pair. Intermediate term chart shows that rally stalling, and then reversing, at a 100 SMA, indicating resumption of the downtrend.

The 100 period Simple Moving Average is sloping down, a supportive factor. Other technical indicators also confirm a bearish trend. Reading of the ADX is elevated and rising, suggesting that the trend is strengthening and gaining momentum.

The MACD is in a negative territory, but not low enough to be considered oversold. This pair is making lower minor lows and minor highs within a larger price swing, typical for a bearish trend.

Though lagging behind the other Yen crosses, the CAD-JPY is likely to continue down, with the 86.00 level being the next objective. Once that is reached, this move could have an even lower target of 82.00 over a little longer time span.