EURJPY- With the cross sitting firmly above its key resistance at the 100.75 level and pressing further, the risk of recapturing the 102.52 level, its Dec 21’2011 low is now building up. This is coming on the back of a corrective recovery initiated from the 97.02 level on Jan 16’2012. A decisive clearance of the 102.52 level will set the stage for more gains towards its Dec 12’2011 high at 103.86 and then its Dec 02’2011 high at 105.69. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to our analysis will be a return to the 99.02 level where a reversal of roles is likely to occur. However, below here will aim at the 97.02/00 levels where a breach will resume its broader downtrend towards the 96.76 level, its Dec 12’2000 low. Further down, support stands at the 96.00 level, its psycho level. All in all, EURJPY now faces a corrective recovery as it eyes further strength.
