EURJPY-Having violated its key supports at the 100.00/99.87 levels, its psycho level/July’2010 lows, EURJPY continues to face further downside momentum. In such a case, its psycho levels at the 99.00 level and the 98.00 level will be targeted with a cut through those levels allowing for further declines towards the 96.76 level, its Dec 12’2000 low. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, on any corrective recovery, EURJPY will have to convincingly break and hold above the 100.75 level and the 102.52 level, its Dec 21’2011 low to reduce its present downside pressure. This if seen will trigger further upside recovery towards its Dec 02’2011 high at 105.69 and possibly further higher. All in all, EURJPY looks to weaken further with eyes on the 99.00 and 98.00 levels.
