EURJPY: The evening star candle(top reversal signal) referred to in our previous analysis continues to trigger further downside weakness supported by its bearish daily studies. It pushed the cross to as low as 130.96 level on Wednesday before closing at 132.16. This price development now leaves the 131.06 vulnerable to being attached and possibly taken out and if this occurs, we could see the turning back into its former range again targeting the 129.72 level, its Dec 29'09 high before the 127.65 level, representing its Mar 13'09 high and next the 126.40 level, its Mar 30'09 low where a cap is expected. Alternatively, we expect the 131.06 level to reverse roles and provide support thereby turning the cross higher again initially towards its Mar 24'09 high at 134.52 ahead of 137.41 level, its April 06'09 high where a breach of the latter will activate the resumption of its short term uptrend off the 112.09 level, its Jan 21'09 low towards the 138.55 level, its Oct 20'08 high. Beyond will create scope for additional gains towards the 141.74 level, its Oct 14'08 high. On the whole, we favour the resumption of EURJPY's ST uptrend while its present corrective pullbacks are limited to the 131.06 level.

Support Comments
131.06 Range top
129.72 Dec 29'09 high
127.66 Jan 08'09 high

Resistance Comments
134.52 Mar 24'09 high
138.57 Oct 20'08 high
141.73 Oct 14'08 high

Dailly Chart: EURJPY