The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. NEW YORK ( fxtechstrategy.com) -- Having broken and held below key supports at the medium-term trendline of 107.75 and the daily exponential moving average of 106.79, the risk is for EUR-JPY to weaken further in the days ahead. This development will leave the cross targeting the 105.63 level, its March 6 low. A breach of here will pave the way for a push further lower toward the Dec. 9 high of 104.49, and then the 103.27 level. Its daily and weekly RSI are bearish and pointing lower supporting this view.
The alternative scenario will be for the cross to break and hold above the 111.42/52 levels. If this occurs, further bullish offensive is expected toward the 112.34 level with a violation of there extending more gains toward the 113.00 and then the July 31 high of 114.14 level. Follow TheStreet on Twitter and become a fan on Facebook. All in all, EURJPY continues to hold on to its downside vulnerability as it looks to weaken further possibly toward the next key support.
The Bank of England voted to hold rates steady at 0.5% Thursday, but a vote of 6-3 among the nine members of the rate setting Monetary Policy Committee suggest the policy tract is starting to get more hawkish ahead of the next meeting in August.
