EURJPY-The cross has broken and closed above the 125.19/22 levels, its Mar 12'10/ Feb 22'10 highs triggering its corrective recovery initiated from its 2010 low at 119.63 to close Wednesday session at 126.46. Though now seen hesitating, as long as pullbacks are limited to the 125.19/22 level, its break out remains valid. The bigger challenge for the cross is the 126.96 level, its Feb 03'10 high where we expect a halt to occur thereby turning it lower. However, if that level fails to hold, further up move should shape up towards the 128.35 level, its Jan 26'10 high. Its daily RSI is supportive of its current upside offensive. Alternatively, to reverse our bullish view, a break and hold below the 125.19/22 levels just invalidated must be established to create scope for further downside towards its Mar 29'10 low and then the 121.03 level, its Mar 22'10 low. On the whole, having violated the 125.19/22 levels, further upside risk points higher towards the 126.96 level and possibly higher.
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