CAD/JPY - Canadian dollar bulls maintained the upward momentum as they pushed the Japanese yen longs toward the new all time highs and toward par. As Loonie longs continue to press their advance, a move above the 98.00 figure will most likely see the cross take on the yen offers around 98.81, a 1.500 Fib Extension of the Jun-Nov 2004 CAD rally, with sustained momentum to the upside will most likely see the CAD take on the yen defenses at 100.04, a 1.618 Fib Extension of the Jun-Nov 2004 CAD rally, marking the par for the cross. However a reversal from these levels will most likely see the cross test the Loonie bids around 95.11, a level marked by the 20-day SMA. Indicators remain in favor of the Canadian dollar traders with both MACD and momentum indicator above the zero line, while both overbought oscillators give the yen longs a chance to take back previously lost territory.
Key Levels & Technical Indicators
CHF/JPY - Swiss Franc longs continued to bounce in a tight range as the price action remain confined between 38.2 Fib and 50.0 Fib of the 91.17-84.84 of the JPY rally. As the range trading conditions continue, a break below the channel's lower boundary will most likely see the Japanese yen bulls push their way toward the 87.26, a 38.2 Fib of the 91.17-84.84 of the JPY rally. A sustained momentum to the downside will most likely see JPY bulls taking on the CHF defenses around 86.87, a defensive line established by the September 19 daily low, with a further move to the downside taking on the Swisse defenses around 85.55, a July 21 daily low. Indicators are mixed with momentum indicator above the zero line, while MACD is sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.
Key Levels & Technical Indicators
NZD/JPY - New Zealand dollar bulls came back with a vengeance as they pushed the Japanese yen counterparts above the recent high and continued to establish new multi year highs. As the price action remains in favor of Kiwi longs, current break of the channel's upper boundary will most likely see the New Zealand dollar exhaust the rally around the 79.00-81.00 range and collapse back down toward the 77.91, a level marked by the 20-day SMA. A further move to the downside will most likely see the cross test the New Zealand dollar bids around 76.70, September 27 daily low. Indicators signal trending market conditions in favor of the New Zealand dollar with ADX above the key 25 mark, signaling an existence of a trend, not a direction of one, while both momentum and MACD remain above the zero line. Oscillators are extremely overbought with both RSI and Stochastic treading in the overbought territory, thus supporting the trending outlook, as oscillators tend to stay overbought for extended period once the currency enters a trend.
Key Levels & Technical Indicators
Chart of the Moment
Sam Shenker is a Technical Currency Analyst for FXCM.
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