Yen Crosses Mixed


CADJPY - The CADJPY has rallied for 8 straight weeks now as the pair presses against 108.00. The pair is putting in a momentum extreme on the daily as RSI is above 76.00. This is common at the end of a third wave. As such, we are expecting a 4th wave to occur soon, bringing price down to the previous 4th wave (104.01-106.04 zone) before the CADJPY pushed higher in a 5th wave.

CHFJPY - The CHFJPY is rolling over from 9 year highs. Daily RSI has turned over (as has MACD) and we see bearish divergence at the recent high. A daily close below the 2 month support line, currently just below 98.00, would indicate additional bearish potential. The appearance of 5 waves higher from 94.27 argues for at least a correction (lower). The next resistance level is the psychological 100.00 figure along with the 1998 high at 100.85.

NZDJPY - The NZDJPY has traded sideways since April 26th in a small ascending triangle. The pattern is a bullish one and price is nearing its apex, so we should see a break higher soon. However, this break higher will be a 5th wave so be wary of a reversal. The next level of chart resistance is not until the 1990 high at 92.84. Remaining above 86.69 keeps the bullish structure intact.