The joint transform correlator (JTC) has been the best known technique for pattern recognition and identification. The JTC optically compares the reference image with the sample image then examines match or non-match by acquiring a correlation peak. However, the JTC technique has some problems such as weak correlation discrimination and noise which originates from the interference fringes in the Fourier transform plane. In order to solve these problems, this paper proposes a new technique of modifications of the interference fringes by adopting special iterative filters. Experimental results are presented to show that the proposed technique can successfully improve the correlation peaks and the level of discrimination.