EURJPY- With the cross weakening for a second week in a row, further declines in the new week is likely. On continued weakness, the 105.63 level will be targeted ahead of the 104.49 level, its Dec 09’2011 high and then the 103.27 level. Its weekly RSI is bearish and pointing lower supporting this view. The alternative scenario will be a break and hold above the 111.42/52 levels. If this occurs, further bullish offensive is expected towards the 112.34 level with a violation of there extending more gains towards the 113.00 and then the 114.14 level, its July 31’2011 high. All in all, EURJPY continues to hold on to its downside vulnerability as it looks to weaken further.
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