EURJPY- With the cross selling off and breaching its Sept 26’2011 low at 101.91 today, further bearish momentum is now set to target the 100.00/99.87 levels, its July’2010 lows. However, price hesitation may occur ahead or at that zone and turn EURJPY higher on a correction but if it breaks, further declines should shape up towards the 99.00 level and then the 98.00 level, all representing its psycho levels. Its daily RSI is bearish and pointing lower suggesting further weakness. The alternative view will be a return above the 101.91 level where a reversal of roles as resistance is likely to occur and turn the cross back lower. Further out, a break of the 101.91 level will open the door for further recovery higher towards 105.39/103.91 levels and possibly the 106.95 level, its Sept 15’2011 high. All in all, the cross has resumed its long term downtrend and looks to weaken further in the days ahead.
