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We have investigated the microwave oscillations due to a spin transfer effect induced by direct current in ferromagnetic nanocontact magnetoresistive (NCMR) elements with a current-perpendicular-to-plane spin-valve structure consisting of an FeCo/FeCo–AlOx nano-oxide layer/FeCo multilayer for the reference/spacer/free layers, respectively. Characteristic microwave oscillations were observed in the NCMR elements at different magnetization states induced by the application of a spin-polarized current, which are considered to be related to the introduction of a ferromagnetic NC to spacer layer (large interlayer coupling) and the resonance concerning the stability of the magnetization states of the free and reference layers around the NCs. A marvelously narrow full width at half maximum (FWHM) of l0–20 MHz is observed under a high applied magnetic field where the reference layer magnetization is slightly off axis relative to the pinned direction. By contrast, a wider FWHM of 80–600 MHz is observed at the magnetization state where the magnetization of the free layer just aligned to the antiparallel configuration against the magnetization of the reference layer. These characteristic results are discussed in terms of a spin dynamics mechanism induced by spin transfer torque in the free and reference layers around NCs. [ABSTRACT FROM AUTHOR]