By DailyFX – CAD/JPY * Canadian dollar bulls remain confined to a large upward sloping channel that dominated the price action since the middle of… … June, with Loonie longs pushing
deeper into the yen held territory.

A further move to the upside will most likely
see the cross head higher and test the yen defenses around 104.12, a level marked by
the 2.00 Fib Extension of the Jun-Nov 2004 CAD rally. A sustained momentum on the
part of Canadian dollar longs will most likely see the cross head higher and take on
the yen defenses above the psychologically important 105.00 handle at 106.60, a
level marked by the 2.236 Fib Extension of the Jun-Nov 2004 CAD rally. Indicators
remain in favor of the Canadian dollar traders with both MACD and momentum indicator
above the zero line, while overbought oscillators give the Japanese yen bulls a
chance to retaliate.

CHF/JPY * Swiss Franc longs once again pushed their luck as they pushed the cross
above the psychologically important 90.00 handle, but failed to reach the 91.50, a
level marked by the 2005 High. A subsequent reversal from these levels will most
likely see the Japanese yen longs launch a counterattack and push the cross below
the psychologically important 90.00 handle, a level defended by the 23.6 Fib of the
84.84-91.48 CHF rally. A sustained momentum to the downside will most likely see the
yen bulls test the Swiss Franc bids around 88.94, a level established by the 38.2
Fib of the 84.84-91.48 CHF rally. Indicators remain in favor of the Swiss Franc
traders with both MACD and momentum indicator above the zero line, while neutral
oscillators give either side enough room to maneuver.

NZD/JPY * New Zealand dollar bulls continued to push the cross higher toward the
psychologically important 85.00 handle, a level defended by the 1.382 Extension of
the Jan- May NZD rally. As Japanese yen bulls launch a counterattack and push the
cross lower, the next move to the downside will most likely see the cross test the
New Zealand dollar defenses around 81.60, a level established by the 20-day SMA. A
further move to the downside will most likely see the cross head toward the
psychologically important 80.00 handle and test Kiwi's bids around 80.35, a level
reinforced by the 50-day SMA. Indicators signal maturing trend with ADX above the
key 25 mark at 40.61, pointing to an existence of a maturing trend, not a direction
of one, with both momentum and MACD remain above the zero line, while overbought
oscillators add to a trending outlook.

By DailyFX

dollar bulls remained confined to a narrow trading range that dominated the price action for the… Read the rest of this entry »