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Japanese Yen Crosses Exhibit Reversal Potential
By Jamie Saettele | Published  09/19/2006 | Currency | Unrated
Japanese Yen Crosses Exhibit Reversal Potential

CAD/JPY ââ,¬â€œ CADJPY is right at a short term supporting line from the 9/11 low at 103.97.  Daily oscillators are turning bearish as MACD slope is now negative and CCI has turned down from above 100.  A break below 103.97 bolsters the bearish bias.  On the other hand, a push above the 9/18 high at 105.78 exposes the 9/1 high at 106.36.  A break in either direction could be material as the pair has formed a triangle.

CHF/JPY ââ,¬â€œ CHFJPY broke below a 7 month supporting line on 9/7 and has since tested the other side of that line as resistance.  Price is also currently below the 22 day and 66 day (1 and 3 month) SMAs.  This evidence favors the downside but a break below the 9/15 low at 93.04 is required to instill confidence in the downside.  The 9/12 high at 94.73 is initial resistance.  

NZD/JPY ââ,¬â€œ NZDJPY may be nearing the end of its bull run that began on 5/15 at 67.76.  Price has rallied to a former support zone (which is now resistance).  Divergent oscillators on the daily and RSI crossing below 70 (daily) limit upside potential.  A break below the 9/1 high at 77.08 improves the bearish argument.  A rally above the 9/18 high (78.63) probes the 61.8% fibo of 87.07-67.76 at 79.67. 

Jamie Saettele is a Technical Currency Analyst for FXCM.