The cross sold off further on Tuesday taking out its key support at the 102.47 level, its Dec 11'2011 low to close lower at 101.59. This leaves the risk of a return to the 100.75 level, its Oct'2011 low on the cards. Further down, support lies at the 100.00/99.87 levels, its July'2010 lows. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, 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 materializes will trigger its 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.
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