EURJPY-As highlighted in our earlier analysis, although the cross has triggered a recovery, as long as that occurs below the 104.74 and the 106.36 levels, the risk is for a return to the downside. This will keep our focus on the 102.47 level with a violation of there allowing for a move further lower towards its key support at the 100.75 level, its Oct’2011 low. Further down, support lies at the 100.00/99.87 levels, its July’2010 lows. Alternatively, EURJPY will have to convincingly break and hold above its Oct 31’2011 high at 111.52 level to reverse its bearishness tone and trigger its upside recovery towards its Aug 29’2011 high at 111.92 and possibly higher towards the 113.00 level. All in all, EURJPY faces the possibility of weakening further though despite its corrective recovery.
