We are looking for EURJPY to strengthen towards the 113.99 level, its Jan 27'2011 high despite its present price hesitation. This view is supportive of its recovery tone set from the 110.77 level. If above the 113.99 level is traded, EURJPY should strengthen further towards the 114.93 level, its Nov 22'2010 high followed by the 115.67 level, its range top/Oct 2010 high. On the contrary, the risk to this analysis will be a return below the 110.77 level. This will set the stage for a run at its Jan 17'2011 low at 109.57 level and turn further downside weakness to the 106.82 level, its 2011 low. All in all, EURJPY continues to retain its bullish tone set from the 110.77 level as it looks to recapture the 113.99 level.

EURJPY