EURJPY-The cross has triggered downside weakness in early trading today after losing momentum AT 134.53 and reversing almost all of its previous week gains on Friday. The current price action has turned downside risk towards the 128.77 level, its Dec 09’09 low with a turn below there targeting the 126.83 level where its Nov 26’09 low is located. Below that level will resume its declines activated from its YTD high at 139.22 towards the 124.37 level, its April’09 low. Its daily and weekly studies are bearish and pointing lower suggesting further weakness. To reverse this downside view, EURJPY must break and hold above the 134.53 level, its Dec 04’09 high thereby bringing further upside gains towards the 135.37 level, its Nov 10’09 high and possibly higher. With a rejection of higher prices seen with a follow -through lower today, threats of further downside pressure are likely.
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