EURJPY- The cross remains biased to the downside in the long term as it continues to hold on to its long term bearishness and looks to decline further. As long as the 98.77 level caps, the immediate risk points to its psycho level at 97.00 level where a breach will send EURJPY further lower towards the 96.76 level, its Dec 12’2000 low. A cut through here will allow for further declines towards the 96.00 level, its psycho level. Both its daily and weekly RSI are bearish and pointing lower supporting this view. Conversely, on any corrective recovery, the cross will have to convincingly break and hold above the 98.77 level to put its present downside threats on hold and bring more gains towards the 100.75/25 levels. Above here if seen will open the door for further upside towards the 102.52 level, its Dec 21’2011 low where a violation will target its Dec 02’2011 high at 105.69. All in all, EURJPY looks to weaken further with eyes on the 97.00/96.76 levels.
