EURJPY- With the cross closing flat on Wednesday and seen weakening during early trading today, more downside pressure is expected. Except it returns above the 139.95 level, it faces the risk of further decline.
Resistance resides at the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level. A cut through here will target the 142.46 level.
Its daily RSI is bullish and pointing higher supporting this view. Conversely, support lies at the 138.13 level. A breach will aim at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. All in all, the cross remains biased to the upside but faces bear risk.
Guest post by FX Tech Strategy