The present invention is directed to an MTJ memory element including a magnetic free layer structure which comprises one or more magnetic free layers that have a same variable magnetization direction substantially perpendicular to layer planes thereof; an insulating tunnel junction layer formed adjacent to the magnetic free layer structure; a magnetic reference layer structure comprising a first magnetic reference layer formed adjacent to the insulating tunnel junction layer and a second magnetic reference layer separated therefrom by a perpendicular enhancement layer with the first and second magnetic reference layers having a first fixed magnetization direction substantially perpendicular to layer planes thereof; an anti-ferromagnetic coupling layer formed adjacent to the second magnetic reference layer opposite the perpendicular enhancement layer; and a magnetic fixed layer comprising first and second magnetic fixed sublayers with the second magnetic fixed sublayer formed adjacent to the anti-ferromagnetic coupling layer opposite the second magnetic reference layer.