JPY Crosses Trade In Big Ranges

CADJPY

CHFJPY

NZDJPY

Commentary – The near term pattern in the CADJPY is not all that clear from an EW perspective but the series of lower highs since the 11/7 high at 125.55 is bearish.  We have long favored the idea that the CADJPY was forming a significant top due to the 5 wave advances at varying degrees of trend.  Coming under the 200 day SMA (just below current price) would bolster the longer term bearish outlook.  The decline from 117.20 has been choppy and could be a B wave of an expanded flat.  If this is the case, then price is likely to exceed 117.20 before the next bearish leg. 

Strategy – Flat

Commentary – All of the JPY crosses remain in large corrections from their summer highs.  These complex correction often end up as a combination of 3 wave movements.  One such 3 wave movement may be playing out in the CHFJPY.  A rally from 96.77-99.77 may be the first of an A-B-C.  Wave B is unfolding as a triangle and a thrust higher (relatively soon) in wave C would exceed 100.72.

Strategy – Flat

Commentary – All of the 3 wave movements in the NZDJPY suggest that a triangle is unfolding.  If a triangle is unfolding, then the third leg of the triangle is likely close to complete.  Then expect  an up, down sequence that completes the triangle.  In summary, NZDJPY might enter a tight range period.  If the triangle plays out as expected, we will try to catch the breakout.    

Strategy – Flat