CADJPY Bullish

Analysis Price: 104.31 (Updated: 17 May 2025, 15:39 UTC)

Comprehensive analysis for CADJPY showing predominantly bullish sentiment with 63% of traders in long positions. Market structure, technical patterns, and key levels examined across multiple timeframes.

Select Currency Pair

Signal Overview

Bullish Medium Confidence High Risk

Market Consensus:

63% Long

37% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a medium confidence bullish bias for CADJPY (signal strength: 26%). Supporting factors include: Retail sentiment is 67% bullish; CAD is showing relative strength against JPY (diff: 11%). Risk assessment for this trade is high. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT

67% 33%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bullish sentiment with 67% of traders holding long positions. The market has a positive bias, but watch for signs of exhaustion if this percentage increases further.

Support & Resistance Analysis

Resistance Levels

R1: 106.14 1.76% ↑

Analysis Price: 104.31

Support Levels

S1: 103.88 0.41% ↓

Market Regime:

Range

Analyst Bias:

Unknown

Direction Probability:

50%

Price Position Analysis

Price is currently near support at 103.88 (0.41% below analysis price) with resistance at 106.14 (1.76% above). This position near support could present a potential buying opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

86%

Symmetric Triangle

Reliability:

86%

Detected: May 17, 07:45

64%

Bearish Rectangle

Reliability:

64%

Detected: May 17, 07:53

Pattern Analysis Interpretation

Mixed pattern signals detected, suggesting conflicting technical factors. The most reliable pattern is a neutral Symmetric Triangle on the H1 timeframe with 86% historical reliability. Multiple timeframes showing pattern confirmation increases the reliability of the signal.

High Probability Zones

Resistance Zone

85%

Zone Level:

107.00

analysis price:

104.31

Distance:

2.58%

Confluence Factors:

Shooting Star 78.6% Extension

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

A high probability (85%) resistance zone exists at 107.00, currently 2.58% away from price. Keep this level on watch for potential future selling opportunities if price moves higher.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

0.3

Volatility Regime:

Low

Volatility Level:

10-Day ATR Trend

Volatility Interpretation (H1)

CADJPY is exhibiting low volatility (7 percentile) with an expected daily range of just 0.3 pips. This reduced movement typically indicates consolidation or indecision in the market. Consider tighter stop losses but be aware that breakout potential increases after periods of low volatility.

Correlation Analysis

Top Correlations with CADJPY

USDCAD

-0.88

EURJPY

0.80

GBPJPY

0.80

NZDCAD

-0.72

AUDJPY

0.69

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: EURJPY, GBPJPY. 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: USDCAD, 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

0.04

Neutral

JPY

0.68

Strong

Relative Strength:

-0.64

Bearish Bias

Currency Strength Interpretation (M15)

JPY is significantly stronger than CAD on the M15 timeframe, with a relative strength of -0.64. This suggests a strong bearish bias for CADJPY. However, this bias is primarily driven by the strength of JPY.

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.