CAD/JPY ââ,¬â€œ We mentioned last week that near term weakness was likely limited due to the range bound nature that has persisted since 8/31.  Sure enough, the CADJPY bounced and has traded back to the upper end of the 103.64-106.36 range.  The rally stalled yesterday just shy of the 106.00 figure.  The pair is likely turning over again as 240 minute RSI has rolled over from above 70.  This signal has been golden lately ââ,¬â€œ (keep in mind that market conditions do change though).  A push above 106.36 starts to suggest that a break to the upside is in play.  Initial resistance on a decline from current price targets the 38.2% of 103.72-105.93 at 105.09.

CHF/JPY ââ,¬â€œ The CHFJPY daily chart is choppy and quite frankly, ugly.  In any case, price has held below what may be a resisting trendline drawn through 95.65 and 94.88.  That line is at 94.43 today and decreases about 2.5 ââ,¬â€œ 3 pips per day.  If price can hold below there on a daily closing basis, then scope would remain for additional losses towards the 10/18 low at 93.28.  A break above, on the other hand, exposes the 10/4 high at 94.88 and the 8/31 high at 95.65.

NZD/JPY ââ,¬â€œ The NZDJPY continues to climb higher on gas fumes.  The technical picture is overly bearish with bearish divergence at each successive high since August, previous chart congestion from late 2005 and early 2006 and resistance from a long term 61.8% Fibonacci level (the 61.8% of 87.04-67.76 is at 79.65).  A break below the 10/16 low at 78.16 would begin to instill confidence in the downside.  A push above the 61.8% level exposes the next resistance level at the 2/3 high of 81.95.

Jamie Saettele is a Technical Currency Analyst for FXCM.