EURJPY: Broader Risk Points To The Downside

EURJPY: The pair resumed its short term weakness on Tuesday leaving risk of further weakness on the cards. This view remains valid while the cross trades and holds below the 136.60 level. Support comes in at the 134.50 level where a break will aim at the 134.00 level. A turn below here will target the 133.50 level with a breach turning focus to the 133.00 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, resistance lies at the 136.00 level. Further out, resistance resides at the 136.50 level where a break if seen will threaten further upside towards the 137.00. Further out, resistance resides at the 137.50 level. All in all, the cross now faces downside pressure on corrective weakness.