EURJPY: Pressured Builds On The 129.19 Level

EURJPY- While the cross trades and holds below the 131.24 level, its Jan 06’10 low, we continue to see risk to the downside towards the 129.19 level, its Dec 22’09 low. The fresh downside pressure is coming on the back of a sell off to as low as 129.26 today. If an eventual break and hold below the 129.19 level materializes, threats of further downside will develop towards the 127.29 level, its Dec 18’09 and then its Nov 26’09 low at 126.83. Its daily studies are both bearish and trending lower suggesting further weakness. Corrective recovery if triggered at the current price levels will initially target its Jan 17’10 low at 130.69 ahead of its Jan 06’10 low at 131.24 where we expect a reversal of roles to turn the cross back down again Further out, the 133.62 level, its Jan 14’10 high and the 134.36 level, its Jan 11’10 high come in as the next upside targets. On the whole, having halted its strength at the 134.36 level and weakened through the 131.24 level, risk is now seen towards the 129.19 level and possibly lower

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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