EURJPY: Bearish Momentum Remains Intact.
EURJPY- The risk continues to point lower as EURJPY remains under pressure following its failure at the 117.77 level.
A return below its Jun 16’2011 low at 113.42 is building up as a follow through lower on its Thursday losses is now seen.
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On a decisive violation of that level (113.42), further downside pressure will build up towards its .618. Fib Ret (106.69-123.39 rally) at 112.97 and possibly lower towards the 110.80 level, its Mar 18’2011.
Alternatively, EURJPY will continue to face downside pressure unless a break and hold above the 117.76 level, its May 31’2011 high occurs.
In such a case, its April 26’2011 low at 118.50 will be targeted ahead of the 121.79 level, its April 28’2011 high and then the 123.29 level, its 2011 high.
GBPJPY: Pressured To The Downside Short Term.
GBPJPY – Having continued to hold on its short term bearish momentum, risk of further weakness looks to target its psycho level at 128.00.
The cross has been under pressure since collapsing off the 140.02 level in early April’2011 and an eventual violation of the 128.00 level will set the stage for further weakness towards the 127.52 level, its Mar’13’2011 low and later the 125.95 level, its Mar 17’2011 low.
Its daily and weekly RSI is bearish and pointing lower suggesting further weakness.
On the upside, the pair will have to climb back above the 132.33 level, its Jun 14’2011 high to put its present weakness on hold and signal a return above the 135.13 level, its May 31’2011 high.
GBPJPY is likely to face bear threats at that level and possibly turn lower but if that level is broken, expect to see further recovery higher towards the 137.04 level, its April 27’2011 low.
