CAD/JPY - Canadian dollar stalled its advance following the inability of the Loonie longs to keep the psychologically important 105.00 handle with the cross tumbling toward the 104.00 figure. A further move to the downside will most likely see the cross head lower and following the break below the 103.00 figure most likely seeing CAD/JPY test the Canadian dollar bids around 102.51, a level established by the 20-day SMA. A further move to the downside will most likely see the Japanese Yen traders continue to offer the cross lower and take on the Loonie bids around the psychologically important 100.00 handle, a level being defended by the combination of the 50-day SMA and the 23.6 Fib of the 83.12-105.01 CAD rally at 99.85. A collapse further will most likely see the cross accelerate to the downside as number of strategically placed stop will add to the overall momentum as Loonie traders scramble out of their positions.  Indicators remain in favor of the Canadian dollar traders with both MACD and momentum indicator above the zero line, while ADX above 25 at 35.12 signals an existence of a trend, not a direction of one, with both overbought oscillators adding to the trending outlook.

CHF/JPY - Swiss Franc continued to consolidate recent gains following the breakout above the consolidation range that dominated the price action since the middle of 2004. As the cross remains within an upward sloping channel and continues to establish multi-year highs, the next move to the upside will most likely see the CHF/JPY head higher and test the offers around 93.99, a level established by the 1.000 Fib Extension of the Sep-Nov CHF rally. A further move by the Swissie traders will most likely see the pair head further to the upside and take on the yen offers around the psychologically important 95.00 handle, a level further reinforced by the 1.236 Fib Extension of the Sep-Nov CHF rally at 95.10. Indicators remain in favor of the Swiss Franc traders with both MACD and momentum indicator above the zero line, while ADX above 25 at 35.79 signals and existence of a trend not a direction of one, with both overbought oscillators adding to the trending outlook.

NZD/JPY - New Zealand dollar traders managed to post new multi-year highs as the cross climbed higher above the psychologically important 85.00 handle, only to see the momentum dissipate after a sharp correction. As the cross begins to signal reversal with large evening star formation, a move below the psychologically important 85.00 handle will most likely see the NZD/JPY head lower and test the Kiwi bids around 83.25, a level established by the 23.6 Fib of the 70.81-87.09 NZD rally. A further move by the yen traders will most likely see the carry trader's begin to unwind their positions and by doing so accelerate the sell off toward the psychologically important 80.00 handle, thus seeing NZD/JPY break below the 38.2 Fib of the 70.81-87.09 NZD rally. Indicators signal maturing trend with ADX above the key 25 mark at 42.93, pointing to an existence of the overextended trend, not a direction of one, with both momentum and MACD remaining above the zero line, while neutral oscillators point to an end of the previous trend.

Sam Shenker is a Technical Currency Analyst for FXCM.