CADJPY Bearish

Analysis Price: 115.549 (Updated: 20 May 2026, 18:10 UTC)

Comprehensive analysis for CADJPY showing a predominantly bearish bias with 84% bearish signal balance based on combined analytical factors. Raw trader sentiment shows 39% long, 61% short. Market structure, technical patterns, and key levels examined across multiple timeframes.

Select Currency Pair

Signal Overview

Bearish High Confidence Low Risk

Signal Balance:

16% Long

84% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bearish bias for CADJPY (signal strength: 68%). Supporting factors include: High probability (95%) resistance zone detected at 117; Retail sentiment is 62% bearish; CAD is showing relative weakness against JPY (diff: 23%). Risk assessment for this trade is low. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

Note: The sentiment chart below shows actual trader positioning data (39% long / 61% short). The overall bearish bias (84%) mentioned in the page header represents our signal balance based on combined technical factors beyond raw sentiment.

LONG SHORT

39% 61%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bearish sentiment with 61% of traders holding short positions. The market has a negative bias, but watch for signs of exhaustion if this percentage increases further.

Support & Resistance Analysis

Resistance Levels

R1: 115.776 0.20% ↑

Analysis Price: 115.549

Support Levels

S1: 115.385 0.14% ↓

Market Regime:

Uptrend

Analyst Bias:

Unknown

Direction Probability:

75%

Price Position Analysis

Price is between support at 115.385 (0.14% below analysis price) and resistance at 115.776 (0.20% above), with slightly closer proximity to support. Watch for bounce confirmation at support or break below.

Chart Pattern Analysis

62%

Doji

Reliability:

62%

Detected: May 20, 18:12

Pattern Analysis Interpretation

Predominantly neutral patterns detected, suggesting a potential consolidation phase. The most reliable pattern is a neutral Doji on the D1 timeframe with 62% historical reliability. This pattern is currently only confirmed on the D1 timeframe.

High Probability Zones

Support Zone

95%

Zone Level:

114.000

analysis price:

115.549

Distance:

1.37%

Confluence Factors:

Hammer 61.8% Retracement

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

95%

Zone Level:

114.000

analysis price:

115.549

Distance:

1.37%

Confluence Factors:

Double Bottom 78.6% Extension

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

77%

Zone Level:

112.928

analysis price:

115.549

Distance:

2.30%

Confluence Factors:

Morning Star 127% Extension

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is approaching a high probability (95%) support zone at 114.000, currently 1.37% away. Consider preparing a buy strategy as price approaches this level, watching for confirmation signals.

Multiple high probability zones exist for this pair, indicating a well-structured technical environment with clear levels for trading decisions.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

0.3

Volatility Regime:

Normal

Volatility Level:

45%

10-Day ATR Trend

Volatility Interpretation (H1)

CADJPY is showing normal volatility (45 percentile) with an expected daily range of 0.3 pips. This represents average market conditions conducive to standard trading strategies. Standard position sizing and stop loss parameters are appropriate.

Correlation Analysis

Top Correlations with CADJPY

NZDJPY

0.90

EURJPY

0.89

CHFJPY

0.84

NZDCAD

-0.82

USDJPY

0.80

Correlation Interpretation

Understanding how CADJPY correlates with other pairs can help with portfolio diversification and risk management. Strong positive correlations (above 0.7) indicate pairs that move similarly, while strong negative correlations (below -0.7) show pairs that typically move in opposite directions.

CADJPY shows strong positive correlation with: NZDJPY, EURJPY, CHFJPY, USDJPY. This means these pairs tend to move in the same direction. Trading in the same direction on multiple correlated pairs increases portfolio risk, while finding divergences between correlated pairs can highlight potential reversal opportunities.

CADJPY shows strong negative correlation with: NZDCAD. This means these pairs tend to move in opposite directions. Negatively correlated pairs can be useful for hedging strategies or to confirm signals (a buy signal in one pair would be supported by a sell signal in the negatively correlated pair).

Currency Strength Analysis

Select Timeframe:

CAD

-0.93

Very-weak

JPY

0.89

Very-strong

Relative Strength:

-1.82

Bearish Bias

Currency Strength Interpretation (M15)

JPY is significantly stronger than CAD on the M15 timeframe, with a relative strength of -1.82. This suggests a strong bearish bias for CADJPY. With JPY showing absolute strength and CAD showing absolute weakness, this is an ideal scenario for a short position.

How to Use This Analysis

This comprehensive analysis provides multiple perspectives on CADJPY to help inform your trading decisions:

Sentiment Analysis: Use to understand market positioning and potential contrarian opportunities
Support & Resistance: Identify key price levels for setting stop losses and take profits
Pattern Analysis: Recognize technical formations that may indicate continuation or reversal
Volatility Analysis: Adjust position sizing and risk management based on current market conditions
Currency Strength: Compare the relative performance of individual currencies within the pair
Correlation Analysis: Understand how this pair moves in relation to others for portfolio diversification

For optimal results, consider how these different factors align. The strongest trading opportunities typically occur when multiple analytical tools show confirmation across different timeframes.