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-EURJPY: Price Failure Sees The Cross Below The 131.06 Level - EURJPY gave back all of its gains between Monday and Thursday on Friday turning back into its earlier broken range top at the 131.06 level to close the week lower at 130.05.
-USDJPY: Struggling With Upside Bias - While the pair’s recovery started at the 93.55 level remains in force, risk of a recapture of the 99.68 level, its Mar 05’09 high is likely.
EURJPY: EURJPY gave back all of its gains between Monday and Thursday on Friday turning back into its earlier broken range top at the 131.06 level to close the week lower at 130.05.A long-legged rejection candle is now in place suggesting a continuation of its Friday weakness towards the 129.72 level, its Dec 29’09 high ahead of the 127.65 level, representing its Mar 13’09 high. A cut through the latter should bring further declines towards the 126.09 level, its Feb 26’09 high. In order for this view to be invalidated, a break and close above the 134.52 level must occur setting the stage for a move higher towards the 138.55 level, its Oct 20’08 high. While the downside view holds, the cross is likely to resume its sideways trading range price activities. On the whole, failure at the 134.52 level and the subsequent price declines now leaves the cross vulnerable to the downside.
USDJPY: While the pair’s recovery started at the 93.55 level remains in force, risk of a recapture of the 99.68 level, its Mar 05’09 high is likely. This is coming on the back of a recovery of almost all its corrective pullback losses triggered at the 99.68 level in early Mar’09. This is tempered by its early morning selling off today. With that said, a sustained break and hold above that level will resume USDJPY’s short term uptrend initiated at the 87.13 zone and accelerate further gains towards its psycho level/ Nov 04’08 high at 100.00/55 and possibly higher. Its weekly RSI remains supportive of this view. On the downside, the 96.58 level, its Mar 06’09 comes in as the initial target accompanied by the 95.66 level, its Mar 12’09 low. The next two downside targets are located at the 94.62,its Jan’09 high and the 92.40 level, its Feb 09’09 high. As long as the former is not broken, outlook for the pair remains to the upside in the short term. On the whole, with its recovery off the 93.54 level being sustained, risk remains to the upside.
