CAD/JPY
Commentary – The CADJPY continues to rocket higher as it hugs the top channel line. Wave 3 in the 5 wave advance from 97.50 is extended. When wave 3 is extended, wave 5 often ends close to the 61.8% extension of waves 1 through 3. In this case, that point is 114.32. 114.32 intersects with channel resistance on 6/2 (which is Saturday…so watch next Monday). A reversal is signaled by a drop below channel support, currently at 109.81 (increases about 20 pips per day).

Strategy – None

CHF/JPY
Commentary – From last week, “The CHFJPY remains entrenched in the 5th wave of a 5 wave rally that began at 84.79 in June 2005. The 5th wave has formed a well defined channel and only a daily close below this channel would indicate additional bearish potential. Fibonacci measurements suggest that additional upside potential remains. The 161.8% extension of wave 1 (84.79-93.17/87.67) is at 101.24. The 61.8% extension of waves 1 through 3 (84.79-98.09/94.27) is at 102.41 and wave 5 (beginning at 94.27) would equal wave 1 at 102.65.” The break above 99.49 is from a triangle (visible on intraday charts) and triangle breakouts are typically terminal. We are watching for a rally towards channel resistance (chart above) before a reversal.

Strategy – None

NZD/JPY
Commentary – The NZDJPY is trying to break higher from a month long consolidation. Remaining above 87.55 keeps the bullish structure intact. Fibonacci measurements are above 92.00. The 161.8% extension of 79.25-85.17/82.56 is at 92.23 and the 61.8% extension of 79.25-89.06/86.69 is at 92.74. The 1990 high is at 92.84.

Strategy – Bullish against 87.55, targeting 92.20

Jamie Saettele is a Technical Currency Analyst for FXCM.