Bear Flag *RES 3: 122.01 High Jan....>

EURO-YEN TECHS: Bear Flag

*RES 3: 122.01 High Jan 22

*RES 2: 121.32 Former channel base drawn off the Sep 3 low

*RES 1: 120.42 High Jan 29

*PRICE: 120.25 @ 17:05 GMT Jan 31

*SUP 1: 119.78 Low Jan 30

*SUP 2: 119.58 Low Nov 25

*SUP 3: 119.25 Low Nov 14 and key support

EURJPY edged lower traded broadly unchanged Friday. The outlook remains bearish.

Last week's sell-off resulted in a breach of the key bull channel base at

121.01. The channel is drawn off the Sep 3 low. Furthermore, this week's

consolidation appears to be developing into a bear flag formation that suggests

an eventual break lower. Continued weakness would open 119.58 and 119.25. The

latter is the Nov 14 low and a key support. 121.32 is firm resistance, the

former channel base.