EURJPY has two technical advantages in its favour as it closed on a positive note the past week after reversing its Wednesday and Thursday losses on Friday. This development has confirmed how important the 123.41/13 levels, its April 08/19’10 lows are as that zone has been holding off bear attacks. We will hold our return to the 127.89 level view as long as 123.41/13 zone remains unbroken. The second technical advantage for EURJPY is a short-term rising channel now in place which confirms a pattern of higher highs and lows. This proves that its recovery started from the 119.63 level, its 2010 low remains intact while the cross continues to trade within the rising channel. Resistance above the 127.89 level, its April’10 high stands at its Jan 26’10 high at 128.35 and next the 129.48 level, its Jan 21’10 high. Alternatively, downside risk below the 123.41/13 levels comes in at the 121.03 level, its Mar 22’10 low and next its 2010 low at 119.63. Overall, while EURJPY holds within its established rising channel and above the 123.41/13 levels, we look for an eventual break and hold above the 127.89 level.
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