As EURJPY continues to hold on to its long term downtrend, it now looks to recapture its key support at the 100.75 level, representing its Oct'2011 low. A clearance of there will resume its long term downtrend towards the 100.00/99.87 levels, its July'2010 lows. Below here if seen will extend its downside weakness. Its weekly RSI is bearish and pointing lower supporting this view. On the other hand, on any corrective offensive, EURJPY will have to convincingly break and hold above its Dec 02'2011 high at 105.69 and its Oct 31'2011 high at 111.52 level to reverse its medium term bearish tone. This if it occurs will trigger further upside recovery towards its Aug 29'2011 high at 111.92 and possibly higher towards the 113.00 level. All in all, EURJPY faces the possibility of weakening further through the 100.75 level.

Daily