EURJPY- With EURJPY extending its downside weakness the past week, further decline is envisaged in the new week. This will open the door for a decline towards its psycho level at 97.00 level with a breach of here sending the cross further lower towards the 97.00 level, its psycho level. A cut through here will allow for further declines towards the 96.76 level, its Dec 12’2000 low. Its daily RSI is bearish and pointing lower supporting this view. Conversely, on any corrective recovery, the cross 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 it occurs will trigger further upside towards its Dec 02’2011 high at 105.69. All in all, EURJPY looks to weaken further with eyes on the 97.00 level.
