CAD JPY cross pair expecting a rally

CAD/JPY Forex cross pair is the abbreviation for the Canadian Dollar and Japanese Yen pair. It shows how much the CAD (base currency) is worth as measured against the Japanese Yen or JPY.

As of late the Japanese Yen hasn’t been providing much clues as to what it wants to do versus the US Dollar and other currency pairs, but that could change against other currencies as extended moves into supply imbalances, along with narrowing ranges threatens weakness. We are waiting more of a pullback on CADJPY Forex cross pair given the strength of the bullish pin candles seen on the weekly timeframe at #2. Take a look at CADJPY Forex cross pair supply and demand analysis for the weekly timeframe below.

CAD JPY chart price analysis

That does not mean we want to go long, those trading smaller timeframes, trading intraday can do that if price starts rallying again. Long term short bias, interested in shorts. But longs are possible now all the way up.

CADJPY Forex cross pair dropped strongly last February 2020 creating a strong imbalances at the top of the price range around 82.80. Since that imbalance was created, the weekly is showing us some clues at #2 as per where CADJPY cross pair may be heading to, right into weekly supply imbalance at #1.

CAD/JPY doesn’t have great clarity at the moment, but that is exactly what could give it clarity later on. It is in the process of forming bullish pin candles that later on could lead to another extended move higher into supply.

CAD/JPY forex price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

CAD JPY supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements on Forex.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade forex using our supply and demand trading strategy, join our Forex trading course.