1. CADJPY
2. CHFJPY
3. NZDJPY
CADJPY The CADJPY appears to have turned down from a 3 wave flat correction that began in early December. The labeling (a-b-c) of the flat is on the chart below. The a and c legs of the flat are very close to equal (335 and 345 pips). This is a property commonly found in a correction (flat). Price also turned down just prior to the 61.8% retracement of 106.36-99.96. This next leg down would be the third leg in a bearish sequence and third legs are often powerful. If 103.67 holds as resistance, then the first measured objective is at 97.25. This is where the decline from 103.67 would equal the 106.36-99.96 decline. 97.25 is also near the 1/9/2006 low of 97.10.
CHFJPY The CHFJPY has managed to retrace most of its losses incurred in the first week of the year. It looks like a large wave 3 or C that began in March 2006 is in progress. A break above 98.04 expose a measured objective for the end of wave 3 at the 1.618 extension of 84.74-93.11 / 87.63 at 101.06. This is just above the 1998 high of 100.85. The picture would change if 95.56 support gives way.
NZDJPY NZDJPY just broke above the 01/3 high of 84.65 and has challenged the top of former congestion from December 2005 at 85.46. Oscillators are overbought (RSI) and divergent (everything) so be wary of a sudden reversal. However, the next level of chart resistance is not until the 12/6/2005 high at 87.05 and only a break below 80.97 would break the pattern of higher lows and thus do damage to the uptrend. A cautious bullish bias is warranted above the breakout point of 84.65 with focus on 87.05.
