EURJPY- Having halted its corrective recovery started from the 108.06 level and turned lower on Monday, risk remains for a consolidation. With an offered tone presently seen, bear pressure could build towards the 110.85 level, its Jun 15'10 low with a cut through there targeting its 2010 low at 108.06. A halt in price decline is expected there if seen.
Below the latter will clear the way for a move lower towards the 106.75 level, its Sept'2001 low and then its psycho level at 105.00. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance starts at the 114.14 level, its Jun 03'10 high with a cut through there setting the stage for further strength towards the 115.46 level, its May 18'10 high and then the 119.63 level, its Feb 25'10 high. EURJPY should encounter the bears on an initial test of the latter level.