CAD/JPY - Canadian dollar remains in a strong upward trend as the cross continued to push higher and tested the offers around the psychologically important 105.00 handle. A further move to the upside will most likely see the CADJPY head higher and test the offers around 106.60, a level established by the 2.236 Fib Extension of the Jun-Nov 2004 CAD rally. As the cross maintains the momentum and head higher, Loonie traders will most likely continue to add to their positions as the Canadian dollar breaks above the 108.00 figure and targets the offers around 108.12, a level created by the 2.236 Fib Extension of the Jun-Nov 2004 CAD rally. Indicators remain in favor of the Canadian dollar traders with both MACD and momentum indicator above the zero line, while ADX above 25 at 31.04 signals and existence of a trend not a direction of one, with bots overbought oscillators adding to the trending outlook.

CHF/JPY - Swiss Franc traders finally managed to push the cross above the 92.00 handle, thus breaking above the consolidation range that dominated the price action since the middle of 2004. As the cross remains confined to 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 93.96. a level established by the 1.000 Fib Extension of the Sep-Nov CHF rally. A sustained momentum to the upside will most likely see the Swiss Franc traders push the cross head higher 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 30.54 signals and existence of a trend not a direction of one, with bots overbought oscillators adding to the trending outlook.

NZD/JPY - New Zealand dollar remaines the carry trader's currency of choice as the cross climbed higher above the psychologically important 85.00 handle. As the Kiwi traders continue to add to their existing positions and continue to bid the cross higher, a further move to the upside will most likely see NZD/JPY test the offers around 88.01, a level marked by the 1.786 Fib Ext of the Jan-May NZD rally. A sustained momentum to the upside will most likely see the cross head toward the psychologically important 90.00 handle, a level defended by the 2.00 Fib Ext of the Jan-May NZD rally at 89.55. However any sign of weakness from the New Zealand dollar longs will most likely to issue a sell signal and see the cross quickly collapsing below the psychologically important 85.00 handle. Indicators signal maturing trend with ADX above the key 25 mark at 51.59, pointing to an existence of the overextended trend, not a direction of one, with both momentum and MACD remain above the zero line, while overbought oscillators add to a trending outlook. 

Sam Shenker is a Technical Currency Analyst for FXCM.