FOREX: EURJPY: Struggles With The Bears

EURJPY- The cross may have topped out temporarily as bear pressure saw it selling off in early trading today. EURJPY has been rallying for more than one week and a correction will not surprise us at this stage.

A look at the chart shows almost a parabolic price move for more than a week. If a correction is eventually triggered, we could see the 119.18 level, its April 04’2011 low with a loss of there turning risk towards its April 01’2011 low at 117.81.

Further down, the 116.72 level, its Mar 31’2011 low comes in as the next downside target followed by the 115.98 level.

This level could only be tested if a deeper correction occurs. On the upside, a return above the 122.60 level is required to reverse its present downside pressure and bring more gains towards the 125.43 level.

All in all, with a cap in its bullish momentum seen, EURJPY could be preparing for correction in the days ahead.