CAD/JPY
Commentary – It looks like a top for wave 4 (113.51) is in place and that wave 5 is underway to below 109.93. We would then look for alarger upward correction to bring price back towards 113.51 before the next leg of the downtrend begins. Wave 5 would equal wave 1 at 109.79 (bearish target).

Strategy – Remain bearish, against 113.51, Target 109.93

CHF/JPY
Commentary – We wrote last week that “since the rally from 97.54 is either a wave 2 or a wave b, a corrective rally could continue until the 61.8% of the decline at 100.20.” The CHFJPY hit 100.00 yestreday and the next lower may be underway. There is no evidence that a top is in at 100.00 but a drop below 99.17 would instill confidence in the bearish bias.

Strategy – Bearish, against 101.85, target 97.54

NZD/JPY
Commentary – The NZDJPY cross suggests that some additional upward action is needed before the next down leg begins. A correction has unfolded since the8/1 low at 88.58. The form of the correction is a flat and price should exceed 92.02 in wave c of the correction. Reversal points are the 50% and 61.8% of 97.74-88.58 at 93.16 and 94.24.

Strategy – Longer term remain bearish, against 97.74, targets TBD (under 89.24), short term traders look to get bearish near mentioned reversal points, targeting below 88.58

Jamie Saettele is a Technical Currency Analyst for FXCM.