CADJPY
CHFJPY
NZDJPY
Commentary – We wrote last week that “with the appearance of 5 waves down from 125.55 (which we are labeling large wave 1), we expect a larger wave 2 correction to test the 50% and maybe the 61.8% at 116.71 or 118.79 over the next month.” The CADJPY has rallied over 400 pips since last week and we expect the rally to continue towards Fibonacci resistance in the 116.40-118.80 area.
Strategy – Bullish, move risk to 108.73 (from 107.87), target TBD
Commentary – The CHFJPY appears to be completing a triangle. Triangles are continuation patterns and the previous trend was up so we expect the break to occur to the upside. We expect a terminal thrust higher to complete wave B in a larger A-B-C correction from 101.85.
Strategy – Flat
Commentary – While a triangle could still be playing out, we now favor the idea that price will break higher earlier than expected to complete large wave B in the A-B-C correction from 97.74. If a triangle is unfolding, then expect a dip in wave E of the triangle near 82.00 before the bull trend continues. The best way to play NZDJPY is through a breakout.
Strategy – Buy break above 89.10, target 97.40