Having broken and held below its key supports at the 107.75 level, its medium term trendline and the 106.79 level,its 200 daily ema, the risk is for EURJPY to weaken further in the days ahead. This development will leave the cross targeting the 105.63 level, its Mar 06'2012 low. A breach of here will pave the way for a push further lower towards the 104.49 level, its Dec 09'2011 high and then the 103.27 level. Its daily and weekly RSI are bearish and pointing lower supporting this view. The alternative scenario will be for the cross to break and hold above the 111.42/52 levels. If this occurs, further bullish offensive is expected towards the 112.34 level with a violation of there extending more gains towards the 113.00 and then the 114.14 level, its July 31'2011 high. All in all, EURJPY continues to hold on to its downside vulnerability as it looks to weaken further possibly towards its key support.
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