The cross has halted its corrective weakness and is now struggling to follow through higher but will have to return above the 133.99 level printed on Jan 27'2011 to resume its short term uptrend. The pair closed tuesday higher on a continuation of its Mon day strength. On continued recovery higher, EURJPY should extend further gains towards the 114.93 level, its Nov 22'2010 high followed by the 115.67 level, its range top/Oct 2010 high. On the downside, support stands at the 111.41 level with a violation of there turning risk towards the 112.18 level. A breach will target the 110.20 level followed by 109.95 level. We expect a reversal of roles to occur there (109.95) and turn EURJPY higher. Further down, support lies at the 106.82 level, its 2011 low and then its 2010 low at 105.41. All in all, EURJPY continues to maintain its bullishness nearer term but now requires a return above the 113.99 level to trigger that trend.

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