With the cross ending the week lower and seen reversing its Friday recovery gains in today's trading session, the continuation of its broader weakness is likely towards its psycho levels at the 102 level and the 101.00 levels. Below the latter will pave the way for move lower towards its major support zone at the 100.00/99.87 levels, its July'2010 lows. This zone may proof tough to break on an initial test and could turn the cross back up. However, if it eventually gives in, the cross will target the 98.00 level and the 9700 level, all representing its psycho levels. The alternative view will be a return above the 103.91 level where a break will target the 106.95 level, its Sept 15'2011 high ahead of the 109.95 level, its Sept 06'2011 high. All in all, as long as the 105.39/103.91 levels holds as resistance, our downside outlook on EURJPY remains intact.
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