The EURJPY is foreseen to sustain its steady downward spiral to close out the week’s trades as the bearish thrust propelled the price to descend further away from the 101.13 psychological handle. In fact, the pair has just reached a new three-month low of 100.27. Yesterday proved very significant for the pair as the price ended its battle with the 102.34 resistance and opted to descend and breach below the next support mark located at the 101.13 level. Likewise, the price continues to traverse within the bearish channel that has weighed on the pair since the end of April, suggesting that bias for the pair remains on the downside.

Observing the 30-minute chart, the Bollinger Bands(20) is already expanding after a brief contraction, suggesting that the pair is apt to resume its bearish trend in the coming hours. In fact, the latest candlesticks have already broken below the lowermost band to signify the strengthening thrust of the bearish force. Likewise, the MACD(12,26,9) is portending that the price is poised to reach for further lows as its signal line and histogram are regaining length within the negative region. Nonetheless, RSI(14) is already signifying oversold conditions, likely indicating that a brief correction is apt to commence. After which, however, expect the price to target another support level along the 100.09 mark.

Ignited concerns over the Euro Zone debt crisis are foreseen to further weigh on the single currency today as Fitch Ratings downgraded Greece’s credit rating from B- to CCC, citing the possibility of the nation exiting the currency union. With the bearish trend in favor of the Japanese yen expected to continue, a short position is deemed viable today.