EURJPY- Range trading continues to dominate the cross's price action as it traded lower on Thursday within its trading range between the 110.67 and 113.40 levels. However, it remains biased to the upside nearer term and looks to resume that trend towards the 113.40 level, its Jun 21'10 high and then the 114.14 level, its Jun 03'10 high. A loss of there will accelerate further losses towards the 115.46 level, its May 18'10 high and then the 119.63 level, its Feb 25'10 high.
On the downside, support lies at the 110.67 level, its July 13'10 low with a violation of that level turning focus to its July 06'10 low at 109.13. However, we expect that level to hold and turn the cross back up if tested but if it snaps, further downside threats should develop towards the 108.06/107.30 zone .Overall, risk of a return to the 113.40 level continues to be seen.