Bearish Threat Still Present *RES....>

EURO-YEN TECHS: Bearish Threat Still Present

*RES 3: 122.01 High Jan 22

*RES 2: 121.42 Former channel base drawn off the Sep 3 low

*RES 1: 120.78 High Feb 4

*PRICE: 120.77 @ 16:46 GMT Feb 4

*SUP 1: 119.78 Low Jan 30 and intraday bear trigger

*SUP 2: 119.58 Low Nov 25

*SUP 3: 119.25 Low Nov 14 and key support

EURJPY traded well into the close, but this has done little to shift the

over-arching outlook which is still bearish. The recent breach of the key bull

channel base still weighs on the cross. The channel is drawn off the Sep 3 low.

Furthermore, the current consolidation appears to be developing into a bear flag

formation suggesting an eventual break lower. Continued weakness would open

119.58 and 119.25. The latter is the Nov 14 low and a key support. 121.42 is

firm resistance, the former channel base.