The euro is set to weaken against the yen amid a "bearish trend reversal" that will mark a return to risk aversion, RBC Capital Markets has claimed.George Davis, chief technical analyst for fixed-income and currency strategy in Toronto at the unit of Canada's biggest lender, said the euro is showing signs of being overbought."A daily close below 135.34 would produce a bearish trend reversal that would have significant cross-asset implications," he predicted.His comments came as the yen rose on the perception that Japanese investors are starting to take earnings from foreign government debt home.Speaking to Bloomberg, Takashi Kudo, explained: "The yen is being bought as Japanese investors may bring home redemptions and coupons from Treasuries. That’s been happening throughout this week."Meanwhile, Mr Davis warned that the euro was showing a double top which should serve as a sell signal.A double top is two consecutive peaks of comparable size, with a moderate trough in between.