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Although the EUR/JPY cross remains under pressure on correction, its present rejection of lower level prices in early trading today suggests an end to its corrective weakness may be developing.

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However, the cross will have to climb above the 121.79 level, its April 28’2011 high and 123.29 level, its 2011 high to signal an end to its corrective weakness. Further out, resistance is seen at the 124.00 level followed by the 125.43 level, its Jan 05’2010 high and possibly the 126.00 level, its psycho level.

Conversely, the risk to this analysis will be a break and hold below the 119.19 level, its May 02’2011 low. This will pave the way for push further lower towards the 118.50 level, its April 18’2011 low. Our maximum corrective weakness target stands at the 116.46 level, its April 18’2011 low where the pair is likely to turn back up and head higher again.