EURJPY- With the cross violating the 104.74 level, its Oct 26’2011 low on the back of its Tuesday weakness, the stage is now set for further decline towards the 102.72 level, its Oct 10’2011 low. The cross has been under bear pressure since tumbling off its Oct’2011 high at 111.52 and with continued bearishness seen, downside risk extends towards the 100.75 level, its Oct’2011 low. Further down, support comes in at the 100.00/99.87 levels, its July’2010 lows. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, EURJPY will have to convincingly break and hold above its Oct 31’2011 high at 111.52 level to put its present bear threats on hold and trigger its upside recovery towards its Aug 29’2011 high at 111.92 and possibly higher towards the 113.00 level. All in all, EURJPY remains weak and vulnerable to the downside with eyes on the 102.72 level.
